They were concerned that the install mentions access to Phone Calls on Droid. I cannot explain why it would need that access, other than to think that it must interrupt itself to allow a call through. Whats our take on that?

Answered my own question :) Phone calls read phone state and identity This permission is of moderate to high importance. Unfortunately this permission seems to be a bit of a mixed bag. While it's perfectly normal for an application to want to know if you are on the phone or getting a call, this permission also gives an application access to 3 unique numbers that can identify your phone. The numbers are the IMEI, IMSI and a 64 bit unique id that Google provides for your phone. Some software developers use this as a means of tracking piracy. Additionally, any developer targeting older versions of android (1.6 and earlier I believe) will get this permission automatically added to their app. Nevertheless, while this permission can be innocuous, it is one to keep a good watch on. As someone posted in this thread the application Locale was caught sending this information over the internet unencrypted to a third party -- much to to the surprise of it's users.

I think the permission system on the Android is bogus - when comparing it to other mobile OS's. Blackberry and iPhone for example. The idea that permissions required by an app are listed regardless of whether or not they are actually used is troubling. Nearly every app in the market lists at least some mysterious permission requirements without letting the user know why. In this case, you're right, the Call Me feature, and others, would not be possible without listing this needed permission in the manifest.