If the app had said it needed network access and access to your identity then Android market will always tell you that - the exe has bits encoded in it stating those requirements and can't access the relevant APIs without setting them.
However, the app could describe the reasons for these access requirements as "download updates", "recommend backdrops", or it could have said "spam you mercilessly, send your personal details to a marketing company, and publish all your photos on public websites".
The first one is 'good', but might be lying, the second 'bad' but truthful, and anyway there are hundreds of monkeys out there just clicking Yes when the installation messages appear. They either don't care or don't understand what it means.
Some apps are worth a little bit of privacy invasion, others not.
Jim