After you have core module 'contact' installed, option 'Contact settings' is always displayed on user edit page even you have permission "Use users' personal contact forms" inactivated. By enabling this module, you can have that option permanently removed from user edit page.
In a word, this module does one thing only: remove option 'Contact settings' completely from user edit page. This is a D7-only module, and there is no any configuration options for this module.
This is inspirited from an unofficial Drupal 6 module 'x_contact_option' proposed by Matt B, which can be found here: http://drupal.org/node/138574#comment-928203 . However, in Drupal 7, things are a little different comparing to Drupal 6.