I am sure that most users will not even read/understand that description.
If the user puts some effort into parsing it, they will understand it and what it means for their privacy. But most people will not put that much effort into installing an app.
Despite being perfectly clear to you and I, it is wrong to ask for these permissions at install time.
Imagine if every time you visited a web site you were given a list of 5 - 10 permissions requested by the website before you could visit.