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This might be informative for you...
Google disables contact sync in Facebook for Android, but only Nexus S for now -- Engadget
I'm not sure of its current state in 4.0, but Google's stance I believe is that they don't want facebook contacts muddying up the contact book or something to that effect...someone can correct me if i am wrong.
Ok, I can understand that, but why is it an option under "ADD ACCOUNT"? But when you click on it, it does nothing?? It sounds like it's just broken..
But trying to get around that, isn't there an app that just imports the pictures from FB and puts them on your contacts? I thought it was taken down from the android market, but there is some website you can "side load" it on.. forget the name..
+1 for syncmypix
This feature was one of the really nice things about Sense, they would link all contacts from all social networks and even people who had multiple emails, it would sync them all.