No, because the switch itself will send the OFF command (and therefor will change its state to OFF, too).
On the other side… the light should went out when the last light is switched off without pressing the AllOff wall switch… So simply change the rule:
rule "change state of AllLightsOff"
when
Item gLight changed
then
gLightStatus.sendCommand(if(gLight.state == ON) ON else OFF)
end