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It's still possible to update privileged apps out-of-band and add new privileged permissions. The new privileged permissions just won't be granted until the OS is updated to a version with them included in the static whitelist.
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Replying to and
An OS update was required to add a new priv-app before this feature was implemented. The difference is only that out-of-band updates to the priv-app cannot expand the permissions beyond the whitelisted set. The apps often come from a third party like a carrier.
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Replying to and
There's also no whitelisting for regular permissions requested by these apps, only the permissions that require them to be a priv-app to receive. It doesn't impact normal bundled apps that go in /system/app rather than /system/priv-app or permissions granted via signatures alone.
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