This is not an oversight, it's even mentioned in their privacy policy [0], although I also stopped at that point. Whenever I see a service requesting permission to even have a look at my contact list, I really wish there were a button like "No, I really don't need this social stuff because I know noone in my contact list uses your service anyway and if someone does, I really don't care".

[0] http://theoldreader.com/pages/privacy

Thanks. That rules out the Old Reader for me. I think they should make it optional: only ask for this permission if I try to use the social functionality.

That they would make such an oversight makes me even more uneasy with giving them access to my data.