The table 2 implements the Entity-Attribute-Value model (EAV), which is often selected because of some advantages this model offers over the traditional table model (and relational model at large). One of the known advantages of EAV is that OR searches based on several columns values is both efficient and easier to code that in the traditional model.
Also several new features offered by newer SQL server implementations help with the EAV model.
This said, on the whole, the EAV model is more attractive for the flexibility it brings with regard to the logical schema, and other related advantages than for its performance, in particular when applied to databases with more than a million entities (i.e. possibly several dozen of millions EAV entries, if each entity has many atrributes).
Indeed, proving this point, several EAV implementations introduce a mix of both models, whereby the single-valued attributes which are common to most entities are stored in the "header file" rather than being in the EAV list.
Of course, the final word on which of the two models is more efficient [in the restricitve context of the OR-ed column value problem], depends on the effective implementation, the indexes, and the statistical profile of the data. For smaller EAV tables (like this one with c. 500,000 entries), the EAV model probably offers an edge, in the general case.
See this related SO article: database: EAV pros,cons and alternatives
and in general scan the few SO articles with the eav tag.