New Edit New Menu option how do i turn off

I would love to know answer on this as well. We have given group of users View only access to the site, so they can't modify menus or pages. We give them edit access to the library as they need to be able to add/edit/remove documents. However we don't want a single user to be able to modify the "New" item menu for all users of the site. I've done some googling and can't find any way to disable this, would be great to know how before I have to start going around and fixing broken menus.

Edit: Additional info for a work around, if I change the users permissions on the library from Edit to Contribute, the option to add a template is removed which is good, the Edit New Menu is still visible but clicking it does nothing. So prevents global changes but will be confusing to the users as the option shouldn't be there. Contribute also has other limits so not ideal either.