Android permissions are entirely useless. They aren't permissions since you can't actually turn them off. All they are is a bit of warning as to what the app does. When you install a flashlight app that says it need to read your contacts, it would be MUCH BETTER for Google just to present a warning screen: "This app will upload your entire list of contacts, everyone you know or have ever communicated with, to its own servers. Do you wish to proceed [Y/N]?"

That would actually be an effective warning.

But really, Google doesn't want effective warnings.