When I think about it, there were characters who weren't affected by the shock-waves of PS, despite it had the AOE to reach them. [
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] Hashirama who isn't great for his speed could dodge them. Kaguya dodged the blades of a Rikudou PS. [
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] Who is to say Nagato can't dodge the shock-waves? If he does, he would win. The only problem is trying to reach Madara inside the diamond without getting through PS? Chibaku Tensei can arguably do it; but if he used Banshon Ten'n to pull Madara from the diamond, it's done for.
It goes either way.