The privacy issue in smartphones isn't the freaking application processor running Android. Sure, that ones terrible enough. But the actual problem is the baseband processor running completely non-free software, with an enormous attack surface and access to all the interesting periphery (GPS, microphone). There is not just opportunity to compromise your privacy, Qualcomm and others actively implement such features at…
The solution is for your phone to not be a phone. Strip out the baseband entirely, use usb or wifi to a 4G LTE dongle, do VoIP. Extra benefit that you can explicitly know when you're radiating (and thus being location-tracked). Blackphone is pretty lame, IMO. There's something better coming from a trusted source in weeks, and plenty of work being done on the "there is no phone" phone concept.
Could you provide more concrete info on what you are referencing there?