I had this issue as well. This is what I did to correct it:
1)I turned off syncing with FB to prevent future additions of those contacts.
2) I toggled as indicated above to only show google and phone contacts
3)On the second field to the right, where you have the quick contact widgets, there is a contact widget that even after doing the above steps still had all my FB contacts, as well as some that were inserted in the quick connect tabs (there are four at the top). I touched/held the contacts tab listed here, and dragged it to the trash. The contacts in the quick tabs remained, so I trashed those too.
4) I dragged the contacts widget from the main arrow screen to replace the one I trashed.
Now only the phone contacts (and google ones, if you wish) remain.
Sometimes TOO much functionality can be a problem lol
Oh....anyone know how I can get those quick connect tabs back? heh