It is always fun to have images jumping next to text messages from your contacts, makes it a bit more interactive in my opinion. That’s not a possibility though, not my on Android or on the iPhone. However those with a jailbroken iPhone can readily enable this via ChatPic, a new jailbreak tweak.
ChatPic enables you to view images of your contact next to the text message. This of course requires your contact to have a picture associated, it does sync with Facebook photos to make this easy. Don’t be surprised if you aren’t able to see the apps’ icon on the home-screen since it is integrated in the iPhone settings and can be enabled right from settings.