Re: data use
" that game might request and store your contacts so that the game can notify you automatically when one of your friends starts playing the same game, or has beaten your best score, or done something you haven't, etc."
That's not a legitimate reason to request access to your contacts. The game should request the specific game user IDs of your friends instead of requesting a complete list of everybody in your address book.
"As long as that data is held securely and never sold or otherwise disseminated to third parties *and* as long as permission is given in the first place, I would argue that that is a legitimate use of that data."
First, nobody can legitimately assure you that the data will not be disseminated to third parties. Circumstances change over time. Second, it's not the person installing the game who needs to give permission -- it's the people whose contact information is stored in your device. It's their information, not yours.
Biting the hand that feeds IT
