Do most apps have way too much control for a phone?

[Student]

I recently got a new Android phone and started downloading all the usual popular apps like instagram, twitter, skype, ustream, etc and am finding that permissions requested are most often "full network access" and "full SD card access." To me it seems like anything on the SD card will be in plain-view and it's almost impossible to see if apps are even using secure connections. I understand the need for functionality but I think there's too much total control going on.
Again I understand the need for functionality but I think most people VASTLY underestimate how control-heavy most apps are. Each time you install an app, you're essentially handing over your phone to an unknown party in the background. That is basically ultimate brand loyalty/trust.

[Ryu]

Needs SD card access since it can be installed on the SD card.

Needs network access to update and provide notifications.

What does it matter? I've never had issues with the Apps. At least the trusted ones.

If you didn't give such permissions, then everytime you went to use it, it'd have to ask for permission. Like, if you hit refresh on the Facebook News feed, it'd have to ask "Allow this app to use 3G/4G to update wall?"

And so on. It's mainly so that they don't have to ask you.

[SteveO]

If apps didn't have full network access, then there's no point in having it since it wouldn't be able to update itself or send requests to servers, and nothing would work since everything relies on the internet for pulling content. If it didn't have access to the SD card, then of can't use the storage space for databases or have the ability to move the app to the SD card, nor would you have the ability to save pictures from Instagram, Facebook, or Twitter. If an app didn't have access to your contacts, then you couldn't use it to update contact information from applications like Facebook and Twitter, nor would you be able to set contact notifications or ringtones. The permissions you grant aren't a security concern...the Android system, by design, needs those permissions since it's very secure by nature (thanks to a customized Linux-based kernel and architecture). Information isn't collected by a third-party unless you explicitly tell an app that it can do that. Permissions in Android are used to access different areas of the system and even then it's limited in what is available and how that content is accessed.