No. That is not true. Everyone knows in the industry that this problem exists. Even Apple Store fights with this daily despite having the practice of personally approving the apps. Let them fix their problems.
The article title is scary ... but is the malware a technical violation of data privacy (consolidating data without explicit permission) or is it actually capturing and exploiting private data for identity theft or other illegal activities? More details are needed to determine whether these are scare tactics laying the groundwork to justify selling scanning software or a representative sampling of compromised Androids.
There are shades of grey here.
We unofficially and maybe unconsciously contract with Google and other Web 2.0 companies when we use their Web services, letting them data mine our preferences.
With malware third parties that run the gamut from entrepreneurs to those with malicious intent try to jump on the bandwagon as it rides past. So far the damage has not been great enough to drive people away, but...
The entire business model of Android for Google revolves around gathering your private information so that they can show you more targeted ads. So
All Android phones are intended to collect your private data in a supposedly anonymous way. When google itself do this, can you blame the 3rd party app developers on taking your private data and trying to monetize it? Thats why all enterprise customers go for iOS/Blackberry.