How many words do you need to speak a language?

Those numbers are about right IME. I speak two languages and I'm learning a third. With a vocabulary of around 1100 words I am able to make basic conversation (able to talk about myself, who I am, what I do and what I enjoy and so on). If I read a newspaper I understand on average about 60% of what's written which sounds like a lot, but it's often not enough to understand what's going on for certain.

If someone is learning a language for fun, I'd recommend starting off with one with a lot of shared vocabulary with your native language. French for English speakers is a good start. Much better than German (despite English itself being a Germanic language). Even as someone who's only exposure to French was a couple of Michel Thomas cassette tapes; I understand a surprising amount of a French newspaper. I studied German in high school and I understand virtually nothing in a newspaper in comparison.