Multiple Private Blogs

I have created a website which I hope to be a central hub for a select group of people. I do not expect in the near future or even in the next 1-3 yrs for this to grow beyond more than a handful of people.

I’m having issues coming up with the best option to create a personal blog, for those users who chose to have one.

• I don’t mind manually creating each subdirectory for the moment. But if this were to grow larger than I could do that, I would switch to WPMU automatically.
• I want to have the option of having a personal blog post posted to the main page. Again, I don’t mind manually doing this, but would be happier if there’s an option.
• I want each blog to stay with the theme of the site.

I’ve looked at WP Hive, which still seems to be supported, but there is that whole having to manually create subdomains and whatnot. I can’t tell if Lyceum is still being supported. And Virtual Multiblog looks promising, but I can’t quite tell from the website’s terminology if it’s what I’m looking for.