Yes, you have read the title correctly, the codebase of both WordPress (single user installation) and WordPress MU (multi-user installation) are going to be merged into a single codebase.
It is not clear when this merging will be done, but my guess is that they will be merged in WordPress 3.0. Once the integration is done, we can have BuddyPress for single user installs also.
This is great news both for the developers and end users and I am very excited about it. 🙂
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