The role of Product Designer is to make coherent the set of stories from a vast set of customers. This role is important when doing products where one in-house customer can not represent the target market.
In this case, the Product Designer plays the role of Customer in XP. The Product Designer may, however, come from the customer's problem domain. Or, the Product Designer may be a design expert who steeps themselves in customer contact. The trade-off is which risk to take: teach a customer to design, or teach a designer about the customer needs. (This last point came from an InterviewWithKent).