Are we allowed to use a games wallpaper as our gamerpic?

You can use anything for your gamerpic as long as it stays within the Code of Conduct.

You can read more about using custom images here
https://enforcement.xbox.com/en-US/home/staysafe#topic13

How long will we not be allowed to upload our own gamerpics? I don't understand the reason for this.

Yeah we need wallpaper to our xbox one

More feature to make it even cooler, like adding gif gamerpics and wallpapers.

I think that we the consumers have the right to use our gamerpics that we purchased no mater how old it is or how low res it is. We paid for pictures that allow us to express who we are back on the 360 but now on the Xbox One if we so much as change our
picture for a second to one of the "New HD Gamerpics" we can never go back to being who we once were. The pictures that our friends have grown accustomed to over the years, gone in a matter of seconds. To fully express how I feel on the topic I must compare
what Microsoft has done to gamerpics with the Xbox One to drastic plastic surgery on a persons face in the real world.