What Android doesn't have is the ability for the user to deny permissions. It does inform the user when installing the software, but there's still no way I can control permissions of Application X and disable it's access to contacts, SMS, and so on.

iOS gives every app the same rights, Android presents a list of permissions without the ability to disable any of them. What's the difference? I suspect that the vast majority of users don't read that list anyway and just click through. Those that do read it and understand it have only two options - ok to everything, or don't use the app.