yer, but this doesnt make it so that he can? unless he chooses a different name?
No, as it infringes on the IP from MS. The sprites will have to be different and the name would have to be different.
The 'license' only allows 'whitebox' assets to be used. So it means you can record footage from their game and distribute it, you can get screen grabs and distribute them but you cannot infringe on their IP by using their name or create assets that look like their IP (i.e the Halo Zero sprites).
A good example would be the Red vs Blue shorts. It uses the game, assets etc to make a short episode but it doesn't use the Halo name or story. It is essential a game that is recorded.