TL;DR: that was a mistake in 1.0, and it was quickly removed in 1.1.
The #2 feature request was to show Chrome's Top Sites list somewhere on the page (you know, those sites Chrome shows by default on the New Tab page). So I implemented it, and that required a new permission called 'topSites' which sounded innocent, so I did it.
I guess I should've looked into the details, because I had no idea it would ask users to read all sites they've ever visited...all I needed to see were the top 8 (in order to show links, not harvest the data).
But still that's a no-no. I can see why it'd sound shady, and I'd be wary of granting such permissions myself. The people who wanted that top sites list will have to get by some other way.
In hindsight, I should've done more research before requesting the permission : / Lesson learned.
See the icons from my pages and see which pages I visited ?