Is there a way to set a key binding so that it would cycle application with a single workspace?
Command+tab would go through all the spaces.
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There is a default way hidden in
System Preferences->Keyboard->Keyboard Shortcuts->Keyboard & Text Input->Move focus to next active or next window
It doesn't show a list of the windows tho, it just switches to the next window. It also sometimes seemed to switch to an application that had no windows so I installed Witch.
There's no way to do this by default in OS X but Optimal Layout, an application I developed, does this by default - the windows are grouped by Space and window activity.