A few people here and there say that they have the "sync friends with contacts" option, but as far as I know the majority of people do not have this option (myself included).
Syncing phone contacts and facebook user pictures has long been an annoyance on the D2. Some people have had positive results with an app called SyncMyPix, though in my case it fubar'd my contacts and I had to re-link a bunch of stuff. Deleting your facebook account from your phone, uninstalling the facebook app, then reinstalling/re-adding was less of a headache for me, but still a headache nonetheless.
This is one bug in particular that I really hope gets fixed in the next update.