Important note:
I got a lot of reviews, some flames about Naruto and the Kyubified mode and changed it. Read over it and the authors note cause I just gave something away key to the story as I can't see the Ten Tails and the tree as a God. For those complaining by all means make your fic so I can look over it and critique it. I'll only bother to do so if it is worth my time.
As why he doesn't annialate the empire with Kyubi, simple it would ruin the story and bring it to a conclusion then and there. There won't be a story to tell, and besides Esdese is the strongest in the empire and I can see her being able to subjugate Naruto in a power fight for now and thats excluding Budou and the imperial army he commands. Additionally the empire isn't weaker than the elemental nations, they could be seen as stronger and better organised, guns you know and the prime minister has a son that has a teigu that can teleport anything away just like Minato. If your saying Naruto's super strong and beats everything hands down, try creating a fic like that and I can tell you the plot would suck or the story extremely difficult, and that's excluding the immortality stuff since he's only 14.
A good story is progressive, most people that reviewed or flamed haven't released stories showing themselves as hypocrites, or have but can't maintain it cause the plot sucks and is boring to write.
Now I'm going to fix up my Konoha interaction, mainly for the first 2 chapters before I release another. Don't know if it will be today as learning from this I'll hold back my releases till I'm fairly secure they are done ok. It only takes around 3 hours to write a chapter anyway.
I'll delete this note later as I release another chapter.