"Show only contacts with phone number" - Filter missing in Android 4
In Ice Cream Sandwich, the old Contacts app was now replaced with the People app. This new app is meant to keep you connected with all of your contacts, not just people you call, and it does so in different ways then the old contacts app, by hooking in to social networks and things like that.

The option to only show contacts with a phone number is not an option in the new People app. But I agree that it should be there, especially when you are searching for a contact when you want to make a phone call.