Okay, so I read some spoilers, and so can't really claim to be surprised by anything that happened. Nobody should be surprised though. Naruto talking the bad guys into a change of heart is his M.O. Actually, seeing how the back-from-the-dead thing worked out my main reaction was..... Why didn't Nagato use this when Yahiko died? Or other people? I could see him not being able to when his parents died, but seriously? When did he learn to do that, and why didn't he use it sooner?
Okay, logic aside, I suppose because it makes a better story. Besides Nagato had to die somehow in a day that was not Naruto's/Konoha's fault because he did kill people and literally level their town. How awkward would that be, if Naruto came out of the paper tree saying, " Hey, its all cool guys. This dude hate our guts and wanted to kill us all, but now he loves us. Let's break out the pinata! YEAH!"
No. That was not going to happen. Structurally, this gets rid of the bad guy and leaves off the guilt, while still resolving the resentment Konoha citizen's would have had over the city's ruin.
Plus, Kakashi's back, which made fandom's day. And, as unbeleivable as the story arc was, I LOVED all the faces of those watching the dead come back to life. Too funny.