I receive warnings when trying to download apps on my Droid - are they safe?

[Benjamin]

You shouldn't be concerned if you trust the application developer.

Just remember the apps are typically programmed by third parties, so if they require information such as your contact list or GPS location, they could use this data for alternative purposes and potentially for malicious reasons. For example, there is nothing really stopping the developer from making an app that collects all your personal data and sells it to people without your knowledge.

If you trust the developer to handle your data safely and securely and only use the data for purposes pertaining to your use of the app, then you shouldn't have to worry.