(On Android, Hello gets access to your contacts, your rough location, the ability to read and modify your storage, use your camera, and view your Wi-Fi connections)
I understand why it wants contacts, to make it easy to add people, but again, it can be done in a "let the OS offer the contact picker" way, if we're making a privacy-respecting app.
If Google is expected to be the steward of protecting users, they should not allow apps on the Play Store which don't use the most privacy-respecting method possible to implement the needed functionality.
In fact when I use reddit from my phone (through Firefox) I force it to use the non-mobile version as I find it much faster (as long as you open every link in a new tab).
I understand the need for such verification when a webmaster wants to prevent easy re-registrations of trolls and/or banned members, and it's still better than Google's invite only system for when they release something big like gmail or g+, but it's a dark pattern all the way.