This is Confusing and a bit Irritating

[Natey2]

It does bother me a bit that these apps need so many permissions. But does giving an app permission to the phone also allowing it to get to contacts?

I'd say an app that has WRITE_CONTACTS and/or MANAGE_ACCOUNTS permissions.
See
http://developer.android.com/reference/android/Manifest.permission.html

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[Natey2]

I have roughly 400 phone numbers stored on my phone/gMail, and use them frequently for business related reasons.

I'd back them up in good old text/csv format. I've lost contacts during phone-to-server synchs (non-Android days).

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[Martin030908]

I can see how that'd be frustrating hook... odd too.