We introduced a contact sync feature in version 1.4 of the Last.fm app that works similar to Facebook -- you can view your friends profiles, music compatibility, and the last song they listened to from the Contacts app.
This feature requires Android 2.x and is disabled by default, you're prompted during login (on a compatible device) to enable the feature. We don't access your contacts for any other purpose.
It's a great app. I like all the bio data tied to the song/artist. Good way to discover new music that main not necessarily be mainstream. Also a good way to listen to stuff your friends like.
The security access mentioned by the OP is the reason I stopped using it months ago. Thanks for the clarification. If it's not there, might be useful to put that in the update notes in the Marketplace.
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