It's all or nothing, that's correct. Either you install it and accept it's access conditions or don't install it. A popular mod for Android (CyanogenMod) has an extension to the OS that has a toggle button to block any elected app from accessing personally identifiable information, this includes sending the app (say Facebook) an empty address book when asked, and fake details like IMEI, GPS location etc. It should be part of every mobile OS in my opinion. A feature I'm scared to live without.
I love that feature the most. Every phone and computer should have a feature like that. And permissions should be fine-grained and it should be possible to turn them off.
Yeah I wish desktop OS' had this feature. I suppose we'll be heading there. The ability to not deny but send a blank list is better than the former too. Do you know if CM is doing fine grained? I suppose it would be better of AOSP themselves did it.