I think I may have been right. I just downloaded and ran "contact cleaner" and all my contacts are listed with a unique entry number (like an auto incremented/seeded #). They all start in the 500's ... but none are null.
I then proceeded to delete all ... *** BE CAREFUL, THIS WILL REMOVE THEM FROM YOUR GMAIL ACCOUNT ***. I then removed my Facebook account from my account management.
Even though when logging into Google, all my contacts are gone, the phone still has them, odd. I tried another app to delete contacts "delete contacts" and it said no contacts to delete ... odd again. Restarted my phone, and the contacts are still there?!
After looking at Touchdown, I realized that by default it is sync'ing my contacts. I disabled this, and now I'm completely empty of contacts.
I re-imported my contacts back to Google, allowed sync, added Facebook, and all appears to be well now ... no more nulls.
I went back in and reran contact cleaner ... yep, that # is auto-incrimented. So these nulls were more or less my own doing from wiping and reloading my contacts over the last couple days while getting my phone setup to my liking. I highly doubt there is anyway to reset this # without factory reload.