What a stupid response. I'm not a huge privacy advocate but this is a massive breach of trust/privacy. Not only are apps taking your personal contact information but the contact information of everyone you have in your address book. So regardless of your stance on privacy, the privacy of all of your contacts is also at stake.
The part you should be worried about is the fact that they are taking the contact info of your friends and family. People who trusted you enough to give you their data. You/we the users should not get to make the judgement call as to whether or not we are going to give their data up.