Well, the way they originally explained Izanagi was that it turned reality INTO an illusion. So if you died, you could lose and eye and just go "that didn't happen".
It's basically just llike Orihime's power in Bleach. She doesn't actually heal people, she just rejects the reality of the fact that they were ever injured.
Sasuke can't do anything the way he is now. But he's been introduced to new paths for him to attain power.
If he get's his hands on some Senju DNA(which is everywhere atm) he can awaken his Rinnegan. If Kabuto ever wakes up, Sasuke could learn Sagejutsu from him. And Itachi might give him the Totsuka Blade and the Yata Mirror before he vanishes.
All that could make him stronger than Naruto, but Naruto is probably going to end up as the 10-tails Jinchuuriki by the end of this arc.
Really? Because I'm expecting them to spend an entire episode on watching the zombies crumble. Probably with plenty of tearful farewells.