This isn't the problem with UAC prompts. Their problem is that the user simply doesn't have the information to make any kind of informed decision, since the prompts are at pointless places in the lifetime of a process or give very little information on what is actually going to happen ("Do you want to allow the following program [..] to make changes to this computer?").

Android permissions, on the other hand, are reasonably fine-grained and allow the user to deduce what the app is going to do. If the app wants to send a SMS, how hard is it to popup a modal dialog that shows the target number and asks for the permission right there? That is obviously much better than showing it in one big list along with "internet access" in some nag-screen on the store.

Of course the app should know I didn't grant the permission. The only reason you revert to bogus data is because apps currently crash in horrible ways instead of handling it gracefully, as would be the case if this kind of at-the-spot permissions handling was the default.