My take is this: the installer must ask me if I want a desktop icon - to which I can reply yes or no.
Any app that just blindly and without asking installs its icon on my desktop is a bad installation in my opinion.
Ask for permission - if I deem your app important enough to me personally, I might say yes (but most likely I won't). Give your users a choice - don't just assume since it's your app, it's so darn important to everyone that everyone will want to clutter up their desktop with your program icon.
The same goes for the installation directory - unless you have a very good technical reason why you can't install anywhere, allow me to change the program's installation target directory. Not everyone is a big fan of the "c:\program files" folder hierarchy (I'm not, for one - I like to keep my apps in C:\bin for instance).
So in general: any decent installer should ASK the user installing for these things and present sensible defaults - but always give me the option to change the settings to my liking (to my standards).