Yesterday J Allard joined Jon Stewart, Naomi Judd, Bill Nye, Jeffrey Katzenberg, Quincy Jones, Will Wright, and a host of luminaries in the entertainment and technical worlds, at a conference called eg, the Entertainment GatheringCnet’s John Borland covers the story in an article called "Tomorrow's games, designed by players as they play.”  From the article:

Allard told a story of meeting a 12- or 13-year-old inner-city child last year and introducing him to a basketball game on the new Xbox 360. Instead of spending hours dunking or trash-talking with his friends, the boy spent two hours creating a pair of sneakers, saying that was what he wanted to do when he grew up.

Maybe that boy wasn't typical of every single game player, but he didn't need to be, Allard said.

"If only 1 percent of our audience that plays Halo helped construct the world around Halo, it would be more human beings than work at Microsoft corporation," Allard said. "That's how much human energy we could harness in this medium."

By the way, it’s been a while since you heard from J Allard.  That’s understandable, since he’s been busy in his new role.  In addition to driving innovations on the Xbox platform, J and his group will own the vision, product roadmap and execution for end-to-end customer experiences in the digital entertainment space. This work will include software and user interface, services development (including Xbox Live), and hardware and software design philosophy. J will work closely with the Windows Media Player and Windows Media Center teams to drive cross-company integration at a technical level.