Microsoft did not make that game. Ninja bee who also made the fantastic XBLA games Outpost Kaloki, Band of Bugs and Cloning Clyde created it. Previews for A Kingdom for Keflings say its a very good game, the Avatars in there are not mandatory. You can use the standard game people they put in.
Get off the MS hate bandwagon, and just try the game first. There are demos







