Bigger AoE than Bijuu Dama=/=Stronger than Bijuu Dama.
Madara didn't wrap himself around the Kyuubi, what manga are you reading? Madara wrapped Susanoo around the Kyuubi to protect it and himself.
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-Bijuu Dama hits Susanoo
-Explosion
-Susanoo is unscathed.
Either the unstabilized one tanked it or the Perfect one tanked it, either way it was tanked and there is nothing you can do to change it.
Distract PS? Do you not realize how dumb that sounds? Distractions aren't working when one slash covers this much range.
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Summons get oneshotted by the above sword slash with ease. The dog summon can be ignored since it can't do jack to PS anyway.
Fly? Good luck when PS's sword slash occurs faster than Nagato will ever be able to reach Madara. Nagato's summons get one shotted as soon as they are summoned.
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Nagato gets owned. Simple as that.