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