There's a lot of in-between area, though. This site doesn't seem to be clearly using the photos in the model/advertising sort of way; they're not using them to launch a line of public-transit-rider products or putting them on tshirts or something. It's definitely a step down from journalistic reporting, but I could see it arguably falling closer to that than to the usual cases where model releases are needed. You could imagine a genuine reporter running a story on fashion trends in different demographics or something, illustrated by a few photos taken out in public, and this is basically the half-assed, mean-spirited tabloid version of that focusing on one particular demographic.
(Though as far as AdSense in particular goes, Google can of course make up any rules they want.)
To get a real answer you'd have to ask a lawyer. But my intuition is a blog that uses one photo per post in fine, while the website in question is not fine because it requires the photos to even exist as a website.