Warning: if you are on Jelly Bean (Android 4.1+), be sure to check whether LBE has been updated for Jelley Bean yet. At the moment (July 27 2012) it is still incompatible, and it will cause your device to boot loop on Jelly Bean.
LBE Privacy Guard can block specific permissions per application, both during installation and afterwards. This is the English version of an apparently Chinese application that has existed for a while (I am not in any way affiliated to them); it already has over 100,000 downloads. I haven't tried it yet, but I plan to do so tomorrow.
You can also set it to, say, have Facebook display a prompt (yes/no) when it wants to access your location, etc. A screenshot from the Play Store: