Its a nice idea, but the way I see it Oro wasn't really there to observe the encounter and therefore could not be affected by Izanami. Its more like he stuck a hidden camera and microphone on Kabuto and could observe the encounter from afar. Its not like his minime was there to be affected, it was more like Oro was at home watching Kabuto's encounters from a Television screen and therefore would not be affected by the things Kabuto was. That's how I saw it anyway.
Instead, Oro was simply reacting to the situation. He realized Sasuke's power and therefore no longer had a desire to conquer him. Instead, he decided to repay Sasuke for reviving him by abiding by his will and helping him accomplish his goals. Sure it seems out of Oro's character, but he had basically obtained immortality anyway, he simply compromised on the fact that he couldn't obtain Sasuke's power.