Itachi used Kabuto's horn to gain access of his memory. Kabuto is having his flash back because of the Izanami. Itachi is browsing Kabuto's life history and memory. Digging the very core of his personally, the root cause of everything.
Itachi aims to kill Oro even in Kabuto's memory. Itachi using the power of Izanami will kill Oro before he corrupts Kabuto's mind.
I said this like 3 weeks ago haha

, I think that we are getting flashbacks as part of izanami. Itachi may want to know his history so he can change his 'fate/destiny'. Maybe he will change the fact his mother forgot about him - which resulted in his little freak out.
By changing that kabuto may become a more neutral character. Alternatively the edo may be dispelled since Kabuto may never have learnt it otherwise from Oro's research.
I would be suprised if Kabuto died by izanami. I think it will be used to end Edo tensei and that is it. That way Itachi can have his little 'talk' and Kabuto can escape only to come back with his destruction of the leaf plan back in action (and therefore being the final arc after the war).
But all of this was previously ignored in the wake of comments like this' As if Itachi is gonna f#ck Kabuto with his jutsu, Kabuto should just die already'. You would not believe how many people said basically that.