Android shows the permissions each app is requesting before you install, and even lets you know if they change their permissions between updates. While what Path did is crappy, they didn't subvert the Android permissions system.

The thing that burnt the poster is that while a social app asking for access to their contacts might not rise a brow, the user has no way to know what they are going to do with that data without looking at the reviews or around the internet for complaints/testimonials.