First of all Kakashi's team are nubs for fighting every single goddamn battle looking at their opponents eyes. Anyone who has ever learned how to fight knows that (on most occasions) the best place to look is at the chest/midsection. If you think otherwise, you will (and should) lose all ur fights against someone who knows how to fight. I just can't believe they would say that.
As for the water binding tech, it was pretty lame to have 3 ppl caught in the same tech at the same time in the exact same way but remember that they aren't fighting against a normal person. This is probably one of the most elite-nin's they will face for a long time. Kakashi and Gai would get owned if they fought one-on-one with members of Akatsuki and Kakashi and Gai are far stronger and more adept at fighting than their respective pupils.
What i don't get at all is why hasn't Gai or even Lee removed their weights? They know this guy is S+ rank so why fight with a handicap?
Kakashi can't have mastered the moon tech b/c even though he is a copy-nin, you can't copy somthing that you don't have. Those tech's are only accessible through the mangekyou sharingan and kakashi only has a normal sharingan. While that is still bad-ass, its not as uber bad-ass as Itachi's. It could be that he can someone do something similar, but probably not nearly as powerful. Or it could just be a bluff. Kakashi is a copy-nin so copying this tech isn't ludicrious (esp when itachi doesn't know the extent of kakashi's ability) and seems almost reasonable. Since he has only implied that he can, Itachi's imagination can run with the idea and deter him in the upcoming fight.