BuddyPress.org

1. Users join the site
Yes, whether you use BuddyPress or not.

2. Ability to upload one image and other users comment on it.
– If you post an image in blog Post/Page – members can comment on the image if you enable comments.
– If you mean upload image via BuddyPress image plugin, then you should check out the free BP media plugins .
https://wordpress.org/extend/plugins/bp-album/
https://wordpress.org/extend/plugins/video-playlist-and-gallery-plugin/
I have only used BP Gallery (premium) and yes, you can comment on any single image, audio or video upload with this plugin.

3. Friends and Followers
Yes. Friends is default install. Followers via BuddyPress Followers plugin

4. Show recent uploads
Of images or media, right? In activity stream – not sure about the first two plugins; you have the option to show (or not) recent uploads in activity stream using BP Gallery.
In a sidebar widget or directory page – I believe all of the 3 mentioned plugins have this capability.

1. You don’t require BuddyPress if you just want something like the photoblog site you linked to. You only need
a. The reflection theme http://xyloid.org/projects/reflection/
b. Yet Another Photoblog Plugin http://johannes.jarolim.com/blog/wordpress/yet-another-photoblog/
c. Allow user registration to your site – at least Contributor level – and instruct users on single image uploads only.

If you still want to install BuddyPress, the three BuddyPress-compatible gallery/media plugins mentioned above can be configured to limit users to single image uploads at a time.

Ok. just checked, and just noticed YAPhotoblog plugin is good to WP 2.9.2 only. To resolve issues with that plugin, you should go to WP.org forums https://wordpress.org/tags/yet-another-photoblog?forum_id=10#postform use same username and password to log in there.