Please, let us know when you push the update. It's terrible requiring so much permissions..

That is a hell of a lot of permissions for what you are doing:

    Identity
    	* find accounts on the device
    
    Contacts
    	* read your contacts
    	* modify your contacts
    
    Location
    	* approximate location (network-based)
    	* precise location (GPS and network-based)
    	* access extra location provider commands
    
    Phone
    	* read call log
    	* write call log
    
    Photos / Media / Files
    	* modify or delete the contents of your USB storage
    	* read the contents of your USB storage
    
    Camera
    	* take pictures and videos
    
    Microphone
    	* record audio
    
    Device ID & call information
    	* read phone status and identity
    
    Other
    	* receive data from Internet
    	* full network access
    	* view network connections
    	* change your audio settings
    	* control vibration
    	* prevent device from sleeping

Is this a problem with Android APIs? Does the ability to show a sponsor advert require detailed location, etc?

I'm always surprised by how relatively simple apps seem to require such broad access.