So?.. Orochimaru still managed to tonguecrush Jiraiya without his arms. Manda was going to eat Gamabunta & Jiraiya. Without Tsunade's help, they would be dead by now. Yeah, he had Kabuto, but Tsunade & Jiraiya had Shizune (The leader of the medic division) and Naruto (Kyuubi). Doubt Jiraiya can go Sage mode here, snakes are stronger than frogs, so they will defeat Gamabunta & the others with ease. Yamata No Orochi + Kusanagi are here to help Orochimaru if Jiraiya goes Sage.
If he has prep for Edo Tensei, i wouldn't call this a fight. :S