Izanagi can only affect yourself, can we ****ing agree with this. Like seriously, it has been stated many times in the manga. You use it on YOURSELF. Tobi was saying Danzo's was incomplete because, first of all he didn't know how LONG it was going to stay active, and it was only able to stay active for ONE minute. Now let's think. Think real hard. Obviously during Tobi's fight with Konan, she had enough exploding tags to blow up for 10 minutes. Tobi can only stay intangible for FIVE minutes. So Tobi would have had to use Izanagi for a full FIVE minutes. Not ONE like Danzo. So his was perfected more than Danzos.
Secondly, since Izanagi can only affect oneself, YOU CANNOT CREATE ANYTHING WITH IT. It is COMPLETELY different than what the sage used. It was said that it is a LESSER technique than what the sage used to create the bijuu. LESSER tech, and that it was BASED off of his tech, which is CREATION OF ALL THINGS.
One more thing, about the Amaterasu that Sasuke hit Tobi with. Yes he could have went intangible, he also could have used Izanagi and transplanted another eye. But why couldn't he have just put out the flames himself? We see Sasuke and Itachi putting out Amaterasu flames with their eyes, why not Tobi? Maybe the thing Tobi hid from Itachi was his MS. Yes Itachi knew that the real Madara has MS, but he was dealing with Tobi. Even if he didn't know Tobi wasn't the real Madara, he knew that he was just a shell of his former self most likely, and maybe Tobi said he couldn't use MS anymore or something, or since he never uses it Itachi thought he couldn't. I don't know, the whole thing is just weird.