No longer able to customise background and card back with own photo's

You couldn't customise it to the extent of that vid Cloud, but you could change the colours and textures on the blades and have your own photos as a background.

I had a pic of my then very young son as mine.

I love the semi-transparent tiles it's good if you add your own photos or pictures to the Dashboard background. I no longer have a Windows 8 UI shouting 'hey I'm Windows 8 I'm going to obscure your Dashboard background pic'.

you can set your own image

https://support.xbox.com/en-GB/help/account-profile/customize-xbox-home/change-xbox-one-background

Customised image

Note Customised images must be smaller than 3 MB, and the best size for backgrounds is 1920 x 1080.

1. Copy a JPG or PNG file that you want to use to a USB device, and then plug it into your Xbox.
   
2. On your Xbox, select Customised image. A dialogue box appears that shows the contents of your console and attached USB device.
   
3. Select the USB device, and then choose your image.
   

Screenshot

1. Select Screenshot, then choose the one you want.
   
2. Select More actions (…) > Background > Set background.
   

Dynamic background

Note Dynamic backgrounds are only available on Xbox Series X|S.

1. Select Dynamic background.
   
2. Select the background art you want.
   
3. Select Apply.
   

Note Some dynamic backgrounds are only available through promotions with special edition hardware (like the 20th Anniversary Special Edition controller). To see one of these special dynamic backgrounds in your list of options, make sure your special edition hardware is turned on and in use with your console when you set your background.

Remove customised background

If you want to remove your background, select Remove customised background.

Use Microsoft Edge to set customised backgrounds

You can also set a customised image as your background while using the Microsoft Edge app on an Xbox console. To do so, find any image you like within the Microsoft Edge app, move the browser pointer over that image, select the Menu button  and then Set as background.

Copyright - just kidding.

What I do with my Xbox 360 and Xbox 1 Dashboard backgrounds is I take 4k photos using my Sony CX190 camcorder or my Samsung S5, transfer the photos I've taken to my PC, to USB, stick it in my console, and apply to the background. And since I own the photos
I took, copyright is in my favour since I took the image with my own device, I am the owner of the image.

But it does look some interesting designs on there.

Jetstarbaby, you can use any Photo from a USB Storage/ Media Sharing or Media Disc as a Background on the Xbox 360. Simply View a Photo and the "Y" Button will appear for "Use as background". It is an Authorized Function and Feature
of the Xbox 360 and will not get anyone Banned or Suspended.

I've been using my own Photos for years as the purchased Themes are simply very poor from every Dashboard after the original Blades Dashboard.