TBH I think your hypothesis is correct bearing in mind the empirical pictorial evidences that you have shown... Another evidence that makes your theory of Madara using a genjutsu right is; if you watch Itachi Vs Sasuke, then you will realise the power of Tsukyomi... When Sasuke broke out of the Tsukyomi, all the effects went on to Itachi, however Sasuke knew it was genjutsu over genjutsu because he had a 3 tome sharingan.
However, in this case Madara has an EMS and I think it grants him extra power to reflect his genjutsu on the moon, when there is full moon (hence his eye of the moon plan, because when he uses 10 tails to do it, the effects will be greater than when he does it by himself).
This time Hashirama breaks the genjutsu and thus the effects were on Madara, who then falls to the floor suffering from the pain of the stab in the tsukyomi.
This is so simple, i don't know how people didnt see this.... I saw this when I read the manga last week, but the only question I had: Was Madara able to move around during the genjutsu? may be that was when he acquired Hashirama's cell or DNA and put it somewhere. probably blood or hair or both
I thought he noticed someone on the hill, someone that actually aided Madara after that battle.
