I see it as a safety feature, not like accepting a EULA at all. If I see some free wallpaper or casual game and it has unreasonable permissions like GPS location, camera, personal contacts, credit card numbers, passwords, send SMS, etc. Well I think, that's not right and won't install it. You can decline it and the rogue app or wallpaper won't be able to do its nasties. And probably even more important if you're installing apps from outside of Google Play, like if they came from 1Mobile or something.
It's a reason why I've turned auto-update off. If an app's permissions have changed, and it's now doing something obnoxious like Airpush or it looks like it's spying, I can see that and refuse the update.
There was post the other week, about getting ads on the phone's home-screen. He originally thought it might have been a virus or malware. It was only some free stocks and shares app that had "create shortcuts" in the permissions. If he'd declined the permissions and not installed it, he wouldn't have had the problem.