We haven't seen Hashirama use wood release yet, or even hint that he had this power. I suspect that Hashirama does not yet have wood release powers and will unlock them soon.
In these last two chapters, I suspect kishimoto is hinting at an idea that is very similar to one Golda Meir mentioned when talking about the Israeli-Palestinian conflict (I don't necessarily agree with her, I'm just pointing out a quote that I find to be very similar to what Hashirama is talking about): "Peace will come when [they] will love their children more than they hate us." In the last chapter we saw Hashirama's father express the idea that the war will be won when all the senju children become powerful warriors and when all the Uchiha children are killed. Hashirama seems to have a very similar opinion to the quote I just mentioned: Love and protect the children first, then hate the enemy. This change of priority seems to be the big difference between Hashirama and the rest of his clan.
I don't know if Kishi is familiar with mid-east politics or not, it just seemed like a relevant quote.
Madara warned Hashirama, just like Hashirama warned Madara. I think this means that both of them are being honest and both of them want peace.
My prediction is that in the next chapter we will see a fight. The families will start fighting each other, and the way that Madara and Hashirama get involved in the fight will shape the rest of the story going forward.
1) Hashirama and Madara both choose not to participate. I don't know where the story goes from here.
2) Hashirama and Madara both intervene to protect Izuna/Tobirama from being injured. In the battle, it's possible that Madara kills his own father to protect Izuna (and thus awakens his mangekyo). Maybe Izuna helps and also awakens his mangekyo. I suspect we will also see Hashirama either use his wood release for the first time, or learn to unlock it.
3) Hashirama and Madara both get angry and join the fight as enemies. This would lead to them each being seen as strong heros, and becoming leaders of their respective clans. However when they formed an alliance later, it wouldn't be as friendly or peaceful as it once was.
The eventual death of Izuna obviously is going to play a huge role in this story. It's important to notice that Madara's brother died, while Hashirama's brother lived. That difference is going to form the basis for the later rivalry.
It's obvious that Tobirama does not die here. It's equally obvious that Izuna does not die in this battle we're seeing right now either (He needs to unlock his MS first, so Madara can take it to form EMS). It is entirely possible that the two fathers die or are injured.
I was really looking forward to this issue, but I have to admit that it was a little bit boring. I think Kishi is stalling, or building up to something big. Without more action and without more plot/character development, I can't give this chapter too many stars.