Well with incremental the developer would put what is 'required' into the manifest for install-time prompt and incremental the rest.
You can't expect a developer to allow you to deny any permission, the whole app would be a giant if-statement spaghetti accounting for all of the permission combinations and workarounds.
As a user, I don't care if your app will self-destruct if you don't get access to permissions like "read and send SMSs". I simply don't want a free to play game to scan my SMSs for advertisement purposes.