Is there an app, or will Google produce a system, where I can protect my Android device?
Imagine a soundboard app that's free, but it asks for your contact information. The average user might be naive and just click OK on permissions. About 24 hours later, they start receiving spam email, telemarketing phonecalls to home or mobile phone, or even direct mail to their street address. Now imagine that same app, but criminals wrote it and they now have access to your cameras or microphone. Sure, you opted in on permissions because you didn't know better, but now the criminals can listen in remotely at any time, or even watch you.
I want to permit apps to do certain tasks including camera or microphone usage, or even contact access, but I want to know exactly what's going on for that access. I want to know if it's selling or marketing with my identity information. I want to know if it's going to spy on me remotely.
EDIT: Bruce Schneier and others have commented on this problem recently here:
http://www.schneier.com/blog/archives/2010/08/eavesdropping_s.html