Of course, the naive implementation—giving the app itself control over the system's settings for it—would be a disaster. (I think early iOS had something like that, but quickly got rid of it—right around the time the App Store stopped being so heavily curated.)
I'm suggesting something more like: if you pull up iOS Control Center while an app is open, it'd have either an "app settings" submenu, or merge "app settings" into the view of system settings. Then, within "app settings", you'd have a little privacy-lock, sort of like the one that appears in a browser's address bar—and which would allow you to change very similar things to what clicking said lock allows you to change in a browser: in est, the states of all the system confirmation prompts the app has triggered.
Less on-topic, but contextually-accessible app settings would also allow you to do neat things like provide the ability to set accessibility settings on a per-app basis in an intuitive way, or to start something like Guided Access Mode (https://support.apple.com/en-ca/HT202612) without needing to enable+remember an arcane gesture. I would especially love the idea of being able to change the perceived system font-size/scaling-factor, or the perceived system language/region, on a per-app basis — basically equivalent to Safari's display settings "A" menu. Maybe even a switch to enable that "monochrome to reduce addictiveness" mode, so you can have it on only within social media apps!