Re: Buddypress as homepage rather than MU
Firstly I notice that your Avatar cropper javascript is failing on registration. Also looks like bits of your site are missing, and messing with the BuddyBar (sub-sub menus aren’t appearing on hover.)
Otherwise, it’s working the way you have it setup. If what you’re asking is “why doesn’t my home theme look like testbp.org” it’s because you didn’t change your active home theme in WordPress.
Not sure what’s up with your member theme though. Might be missing some files or have some funky CSS or JS somewhere. Haven’t really looked into it for you.