Option 2 will not scale well at all. Even at 0.1% of Facebook's traffic, you'd be generating HTML pages often enough to completely choke your storage's throughput.
Option 1 can be scaled infinitely (well, not infinitely, but you get the point) easily by sharding your DB, adding memcache etc.
Further, what happens when you decide to change the layout of the profile page? You'd have to regenerate the profile page for every user, which would be very expensive.
Option 1 allows you to decouple layout and presentation, from the data.