What about apps that ask for stuff they don't need, and possibly send that data to be stored on their servers? Should your only options be "use this app and share everything it wants" or "don't use it"? Think for a second, just one.
Exactly. Think for a second. If you don't trust an app, don't install it.
Think for a second. Every app on an iPhone has internet access and previously had full access to your phonebook etc.. iOS apps still have access to other things on the phone without you knowing about it.
Think for a second. There's a plethora of apps on Android that access your phonebook and other personal things, but do not require full internet access, so you can be sure that nothing will be sent anywhere. This is not the case with iOS apps.
Moreover thanks to Android's permissions system more APIs can be safely exposed to developers. You can for instance intercept a call and do something with it (e.g. turn off music on your computer when someone calls me like in my Foobar2000 controller app and since the app does not require full internet access, it is safe to use). You can't do this on an iPhone.
Think for a second, just one.
So the iPhone should stop asking users when an app attempts to access their location for the first time, and instead rely on a text file that no one reads when they install an app? That's a genius idea... for those opposed to privacy.
No, they shouldn't get rid of that, however you should be informed about what the app will access exactly.
It's nice that iOS asks for your permission when accessing your location (once), however this should be used on top of a solid permissions system. After you give an app access to GPS, it will retain that access until you revoke it.
(...) it's a pretty terrible joke to consider that a substitute for a real permissions system (...)
Drop the fanboy act for a second and give it some thought.
Likewise, you too drop the fanboy act. Android HAS a real permissions system, iOS hasn't. Is simply asking for you location and address book a "real permission system"? Apple is improving in that area, but is still lacking. Android has already a solid system in place, and calling it a "joke" is sign of your serious fanboism or lack of knowledge on your side.
Plus, I'm not a fanboy. I've got both an iPhone and an Android phone. I've been using iPhones since 3G. I've been developing apps for both iOS and Android. This allows me to have an unbiased approach to both platforms and compare them fairly.