Far from it, this is just a moments time to showcase a new technique. However, unlike other villains Kabuto is usually able to remain calm and analyze the situation. After Itachi basically explained that it's a genjutsu and as we've seen him standing there with his hand on his head, the only he needs to do is distrupt it from an outside presence, which he able to do. There are snakes and Oro' s body remains. At this point Kabuto is caught, but this will force an obsession, as it would with Oro.
Therefore, I don't think Kabuto is done at all, caught for a moments time to really experience this forbidden jutsu, but will escape and result the end off Itachi (being that he's so close).