WhatsApp isn't dead, but it isn't really monetisable. We'll see how Telegram Premium goes - personally i have it, but i doubt many people are willing to pay for a chat app with tons of free alternatives.
But if Facebook turned around and would say "hey if you all start paying us we can drop the whole evil thing" then yeah they'll get my middle finger. They just have lost my trust.
a) Isn't that reasonable for a chat app? I mean, contact book, photos, location are all things that are likely part of the fabric of your chats with others?
b) It might ask for permission, but does it stop working if you deny permission? (I genuinely don't know since I'm not a user). If it doesn't prevent you from chatting, I don't think this is a strong argument.