This paper describes a complete low-complexity imaging system based on a single MEMS scanning mirror and a single photodetector, together with customized image enhancement algorithms based on sparse signal representation. Due to very low complexity of our developped optical set-up for image acquisition, resulting images suffer visible artifacts. We propose an iterative denoising-deblurring algorithm for image enhancement, which offers significant improvement over wavelet denoising with soft-thresholding. Several image enhancement algorithms are compared using the blind image quality indices (BIQI) as well as visual experience.