So, every couple of days I have to handle (and ignore) around 17 update notifications. Not a problem, only a minor chore.
Occasionally I decide to update an app but I am then informed that the app wants to extend the permissions it needs in order to operate.
It's perhaps worth noting that automatic updates won't
update an app that is wanting to change its permissions, so if this is the only reason you keep automatic updates off, it is not a reason to worry.
With regards to the permissions themselves seeming a little excessive, oftentimes this is partly the app being a bit too liberal and partly them needing broad-stroking permissions to achieve tiny things. For instance, many games will require one of the phone permissions, which at first glance looks alarming but in actual fact is so that they can pause elegantly if you receive a phone call.
If an app requires permissions that seem askew to its main purpose, most app developers will explain why they need those permissions. In actual fact...
Why does my Argos app need access to my photos, microphone, camera, wifi connection details.... ?
The Argos app states quite clearly in its app description why it requires those permissions.
Am I being overly concerned about the permissions I am asked to allow?
I think it's right to be sensible but ultimately you need to weigh up convenience against intrusion. The vast majority of developers are completely benign and don't want to steal your contacts or wipe your SD card. You can generally tell from the top few comments if an app is being too liberal in its permission requests or if the app is dodgy. It's not in, say, Argos's interests to start putting dodgy or nefarious apps out because obviously they're a big company with a code of conduct to uphold, but for smaller companies and unknown devs, it's not a bad idea to exercise a reasonable amount of caution.