from waht i saw and rememebr( i watched it so far 3 times from start to finish 1-130 right now lol)

now for teh flash back for waht i saw and understood, he failed everyone taht times cause of a simple things
#1 everyone that staied did so for selfish reasons
#2 where scared/unsure about themselves and there team mates thinking taht they would fail
remember everone durning this test even the young bro was scared but thought he was doing taht right thing, but he was doing so with the wrong reasons. he wated the be a leader cuase he was one guy brother not cause he cared for his team amte or the like.
they did not show waht was needed in a leader ship position.

now in naruto test everyone once naruto showed he not quite and stay for his friends even if he could not advance in rank everagain no matter what it cost himself. that ran off teh fear that everyone had during that test. shwoing they had the heart and spirt needed to be a leader and willing to put one self on teh line for their team mates :-)

lest taht how i seen it so far. might be over thinking it.

also do not forget the hokage told them at one point no one ever had to pass to become a leader taht all or 0 could pass pending on the judgement of the leaders and showing of there skills/talents