Here`s why:
-They want your location because then when your on internet, other internet places wants to know where you are so the could send you email or etters in your masilbox, also they want your contacts for doing the same, but with your friends to.
-As ChristenMartin said... Gouvernmental Conspiracy... They may use it to know everything you do and where you are...So in short... YOU ARE BEEING WATCHED!
-An animated show called South Park made fun of it...if your wanna watch it its called "Humancentipad" and its on the 15th season.
Anyways... There your know why they want to have your location, email and friend list...
---SecretAndAnonymus