The new permissions model on Android is a big improvement over the former "take it or leave it" approach, but applications can still deny service if you don't give them what they want. I can't comment on iOS because I've never owned an iPhone.

Perhaps I'm just spoiled by the excellent quality software I get for free on my Gentoo/Debian workstation. I just refuse to accept that because my phone fits in my pocket, the standards should be so much lower. I miss my n900 dammit. :/