He can't handle diplomatic issues by himself. His stupidity might cause another war later. Not to mention, sasuke won't be too pleased if Naruto becomes hokage, as sasuke is very serious and determined to govern leaf village properly. If Naruto becomes hokage sasuke might become another madara (sasuke is so emo, as we know)
If Naruto doesn't become hokage, the story will be completely unaffected. That's the best option actually
Sasuke isn't even a leaf shinobi anymore, so who cares if Sasuke isn't pleased :|
Here's a few reasons why Naruto wants to become Hokage:
• He wants to change how shinobi's are being used as tools (Haku and Zabuza)
• He wants to stop the way Jinchuuriki's are being treated
• He wants to stop how the tailed beasts are being treated
• His main goal is to get rid of the hatred in the world.
So I say he has enough reason to become Hokage and why do you say that he can't handle diplomatic issues? That's why "tnj" that you haters love to use, comes in. He changed the minds of many shinobi and made people follow him. That's his talent, changing the hearts of people.