I ask you one thing: why would it be great? Just because "someone" needs to die in this war? I agree up to a certain extent.
I wouldn't have a problem if she'd die but not like this.
This fight wasn't even explained. And don't give me that part with Madara is a God so nothing's needed to be explained or that Naruto needs to be the next Hokage.
No. 1 even if Madara is such a God - don't get me wrong, I like him as well (points at the sig) - that doesn't explain how they got in that situation. I agree, when Jiraya died, he went like a hero but the details of his fight were fully explained and Kishi showed how he went down.
Here, all we get, is the kages down, stabbed, sliced or God knows how. You say in order for this war to be ok it needs a quality writing and that someone needs to die. Well, does it seem to you quality writing when some people who are supposed to be the stronger in their nations, die like nothing has happened, when nothing's explained? I guess it means that some of us get the concept of quality writing differently.
Second, I agree, Naruto is hell powerful now, would be able to be a Hokage given his power-stats.
But in order to be Hokage you need more than that. First you need experience, you need to be clever enough to be able to gather a team that for example synergises with eachother in order for a mission to be succesful, you need to plan different strategies and so for different situations, God knows what.
Plus you need to be mature enough. Thing that Naruto doesn't posses, yet.
So, my bets are on Tsunade living. If she won't live than that's a bad writing from Kishi's part. As everything surrounded the kages survival situation can be explained how.
If she later dies in a battle with Madara, where is fully explained, I'm ok with it. But if not, that pure bad writing, as I said.