It's a fun device. But it's a spy, outside my control, in my pocket.
I've rooted it, but haven't yet modded it (and if anyone cares to point me at a gentle introduction for CyanogenMod or another option that works on an HTC Incredible, I'm all ears).
I've been reasonably conservative in what apps I place on my phone, and several (Pandora specifically comes to mind) were removed when permissions were extended to include contacts (Pandora, you listening?).
I'm waiting eagerly for the following capabilities:
To define at the phone level what information I'm willing to share. Existing "privacy controls" make a mockery of any semblance of either "privacy" or "control" by distributing vague and conflicting access among a great many applications with no ability to centrally audit them.
To specifically grant to specific applications specific rights. My location is something I'll disclose very guardedly (I disable GPS functions on my phone). Other rights generally shouldn't be shared.
To request and audit ALL information a given application has of me in a convenient electronic format (such as a database dump accessibly by MySQL or Postgresql). Such functionality is of course a three-edged sword, as what information the vendor has and I wish to request a third party might also request pretending to be me. Or having legal authority to make the request (though that's already the case), via subpoena or warrant.
My contacts list is off limits. Full stop. Specific contacts might be contacted by way of an application if specifically designated by me, but no other use may be made of their information. Hell, it's not even mine to give.
The existing state of smartphones is interesting, but it's also a little shop of horrors. And if application authors, smartphone manufacturers, and telecom providers don't get their act together on this Real Soon Now, we're going to see some horror stories.