I thought he was Yellow flash because of teleporting and his hair colour.
I got the impression from their talks that if you "kill" (destroy might be a better term) Kyuubi, it will reappear soon after. So, sealing it with the death seal might have only resulted in what they were more afraid: It would soon return and this time with nobody to control it (or even worse, in evil hands). Perhaps sealing half of its power didn't trigger such a reaction plus made it possible for Naruto to endure the demon better.
I personally think the plan was sound and seemed very much like something Minato would do, though with as little as we know of him, I guess that's a shaky judgement at best. Nevertheless, to be Hokage at such a young age, he might have been full of will to protect the village. I doubt he could predict Naruto's shitty treatment at the hands of the villagers.