First all the photos sync, however at least for HTC phones, every time I sync, my People app will switch the photo selection BACK to Facebook. I don't like using the Facebook photo and would rather use the photo I have on Google.
This is happing to "linked" contacts and has happened on three different versions of HTC's people app. Not sure if some bit is getting cleared in the data that puts the photo index back to 0 or something (guessing, have no clue how it really works).. :)
This seems to happen with contacts that are not even updated.