This Week in Compressive Sensing
nuit-blanche.blogspot.com
nuit-blanche.blogspot.com
Actually, the camera uses a single pixel, not a single bit. The measurements from pixel are from a 16-bit ADC so we get pretty good grayscale information. There are some single bit compressive sensing implementations, often used for radar where the SNR is low.
There's even a startup that is building commercial implementations of single pixel cameras. We work with the Rice researchers you linked to. http://www.inviewcorp.com/