*SPOILER ALERT*
arrgh, my long post was irretrievably lost because the page expired when i finally clicked on my reply! oh no, a problem with this new site got me!
anyway, i was talking about the izanagi being a high-ranked genjutsu which tops the tsukoyomi but was mistaken in saying that it is a jutsu that turns illusion into reality, well, it is the other way around it turns out. it's reality into illusion. that is why the 'dead danzos' keep on vanishing right before another one, alive and revived, reappears. and while madara's time-space jutsu he can cast on himself, the izanagi is one that is done on the user also. brilliant jutsu! see
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one thing that remains rather unexplained is how another one comes out of the illusion into reality, thus, a new and revived danzo appears.
i also mentioned (in that lost post) about how madara may have known that it was the izanagi that is being used by danzo and how it was declared as a forbidden jutsu.
it is most probable that madara may have used (or tried to use) it once before, and not that he has seen it used by someone else in the past (we don't know yet of any pther great uchiha or a sharingan user who may have the motive and the capacity of using that kind of jutsu aside from madara). this is characteristic of madara: he wants to know and test for himself all the secrets that the sharingan possesses. if madara was able to determine that it was izanagi that danzo is using then he probably knows about it already in the past.
the izanagi could be one reason why madara 'survived' the fight with hashirama; aside from the possibility that he meant it that way ("in the event that i should lose, this is the plan") -- staging his own death (or making it appear that he died) so he could get away from the spotlight and accomplish his goals in the shadows.
this is perhaps the reason also why it was declared a forbidden jutsu by the clan. the izanagi was acquired through evil means and was used for evil purposes. the izanagi comes at a great cost. it meant stealing and collecting the sharingans of uchihas that died in battle. it is all possible that these great warriors (they have three tomoed sharingans!) were sent to their deaths in battle, that is, if it is not at all an assassination that was done on them; which could be what really happened to shisui of the mirage. (these warriors were preselected for their sharingans, and the wars the uchihas engaged in were meant to 'harvest' the eyes of the fallen). this could also explain why all of the uchihas had to be killed in the clan massacre (including the innocent women, children, elderly and non-combatants), since it could be possible that the killing of relatives may develop the sharingans that madara or danzo has already in possession (in the same way that obito's sharingan developed into an MS, years after the transplant into kakashi).
) . If Danzou survives being stabbed by Sasuke, He will still die because Madara is there to finish him off. He was forced to use the sharingan in his left arm, he can't release the jutsu, drained the chakra he saved if ever Madara joins the fight with Sasuke and it says in the last page the fight concludes in the next issue and statistically thinking Madara has the upper hand. lol. 