I'm just wondering if there has been any progress made on the ability to upload photos directly to another person's wall...or even some way to share photos with just one person. My customers use images more and more to communicate, so this feature has been climbing up my list.
No, it's not implemented yet. It's planned, but it won't be implemented for quite some time as other tasks have focus at this time (GJ rewrite).
A great future iteration would be to have a personal wall (i.e., all of your own activity, which would have the ability for users to post messages...just like Facebook) and a general wall with all activity (like what CB Activity already provides).
You can have multiple activity streaming using the Activity fieldtype or you can use Comment fieldtypes. To avoid a single activity stream just don't use the Recent activity page; otherwise it already behaves like Facebook. You can actually just not use the activity tab at all and use 2 activity fieldtypes to have 2 independent streams.