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Apps & Accesses

I recently bought a HTC Hero, and was checking out the Market. So far I like the Hero a lot. Features are great, lots of apps and customization... But I was wondering why some apps require what seems to be unnecessary access to certain things? Example: why does a wallpaper app need access to read/write contacts, my location, or make my phone unable to sleep? Just seems phishy to me...
 

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