And how much vengeance would the Leaf have gotten till they were wide open for an attack?
The Kumo incident was avoided well, I think, seeing as they couldn't really afford to go to war having just dealt with the Kyuubi attack.
The Uchiha Massacre could have been dealt better, I think. There is no way they were all hell-bent on taking over Konoha. They could have like sent in the Aburame to drain the Uchiha's chakra then had the Naras paralyze them all or something like that, before Itachi went slaughter mode or Danzou sent in Root, thus saving at least some of the clan.
The Invasion...seeing as Suna was fooled as well, I'm not so sure on their end. Gaara was their secret weapon and he was pretty weak when it really came down to it (he lost to pre-Rasengan Naruto...) and had it been anyone else he'd of had his throat cut open and Suna wouldn't be a threat to anyone. Konoha went the other way and made them an ally, which turned out alright seeing as Gaara is the kage their now and he rides Naruto harder than Madara does Hashi.
Oto should have been dealt with, yes, but where do you start? It wasn't even a real village you could just invade. It was bases and labs and stuff, right? It was just asking for trouble, entering Orochimaru's territory with your head up your ass looking this way and that.
Danzou could have been a decent Hokage, but he just rubs me the wrong way. He wouldn't have been happy till Konoha was number 1, but he'd of just been opening them up to more backstabbing than they already had to deal with.