Formation wise, Allegri is NOT going to dis the 352 as his core at least at the beginning. BBC is the core and strength of the team and we perhaps have the best wing backs in the world. So you can see why the 352 suits this team. Only reason why it may come under question is that in the 352, the mid 3 has more freedom to attack - i.e Khedira and Pogba would attack a lot in that formation and were very good at it. Presumably when Marchisio returns, it would be Khedira and Pjanic.
Now, James as far as I am aware is a pure attacking mid. I don't know how much defensive work or general work rate is. We would have to change formation to accomodate him. That is a big call for a player who has been clearly out of favor.
Perhaps the 352 becomes a bit of a 3412 with James just in front of the more defensive 2 (Marchisio and Pjanic).
James would be an exciting name but again, I see the chances of that happening at less than 5%.