Would it be feasible for an OS like android to install and run the app, without giving it the permissions it asks for?
With PCs we can do that, we can terminate a service run by a program for instance. If the service isn't crucial to the program functioning, then the program keeps running, and we can even disable the service or make it so that it starts only after we OK it.
With an outgoing firewall, we can do the same with programs that wish to phone home. We can say No to that.
Far as I gather, mobile apps are different: Either we take it (all) or we leave it. No crippling the spyware but keeping the functionality.