A lot of people write stories for Naruto that have the villagers beating on him and calling him a demon. Some even have the villagers and ninja doing this in front of the Hokage. Here is how I think that would go. I don't own Naruto.
A four year old Naruto walked down the street with the Hokage telling him about how his day had gone in his hyper active way. Sarutobi smiled at the young boy, nodding his head and every now and then adding his own bit to the conversation. Around them the villagers celebrated wildly with a parade going down the center of the street. Confetti seamed to rain down in a continuous hail. Venders had set up stalls all down the main street and lights had been strung up in anticipation of night.
However, there was a more morbid side to this celebration. Many families and lone Shinobi visited memorial stones and graveyards to leave offerings for their deceased loved ones. All of the village's ninja who weren't on duty wore clothes of mourning. Many of the stalls had children throwing blunted kunai at foam targets with the nine tailed fox painted on them. Other's offered fox furs that had been harvested just for that celebration. Of course there were other booths that you would find at any celebration.
Even among those truly celebrating and having fun there was an undercurrent of sorrow. No one had any delusions about what they were celebrating about. Yes the fox was dead, but at a great cost and no one could ever forget that.
The only exception to the sadness that had taken hold was the children. They ran around laughing and playing under the watchful eyes of their guardians. Most were too young to understand why everyone had such sad eyes. All they knew was that it was time to have fun!
Naruto and the Hokage smiled and laughed together as they walked around the village looking at the various displays and sights. Naruto was enjoying himself too much to notice the looks he got from everyone around him who wasn't a ninja. The shinobi of Konoha were too loyal to the Yondaime to disobey his last order. A few had tried to dishonor the Yellow Flash's dyeing words. They had been dealt with quickly and harshly. The shinobi may not have cared for Uzumaki Naruto, but they were loyal to the Yondaime even after his death.
The villagers were another matter. Almost none among their population stood up for the young Jinchuriki. The few who did were ostracized from the community. But the sheep of the village knew better than to voice their opinions around the wolves that guarded them. The shinobi didn't take kindly to people calling the brat a demon. Some people, however, never learn.
The Hokage and Naruto were making their way past a target booth when it happened. A man, already intoxicated, glared at the old man and young boy as they made their way past his booth. The fact that no one had used his booth all day already had the villager in a foul mood. The thought that this was because of his drunkenness never even crossed his mind.
"Demon lover," he muttered at the passing duo. Civilians all around stood still in shock before turning away, not wanting to see what would happen to the idiotic man. Shinobi tensed and prepared to throw themselves at the men and tear him limb from limb. Insulting Uzumaki was one thing, insulting the Hokage was another. A slight flick of Sarutobi's left wrist signaled his men to stand down. The old man knelt down in front of Naruto and put his hands on the young boy shoulders. Tears had already begun to gather in his eyes as every trace of happiness fled from him.
"What do you want me to do with him Naruto?" the Hokage asked quietly.
"Make him go away!" Naruto said wiping tears from his eyes before he started sobbing. The Hokage gestured to one of the female ninja in the now deathly silent crowd. She came foreword quickly, a snarl visible on her face as she passed the now shaking villager in his booth.
"Inuzuka Hana, take him back to his apartment and make sure he's comfortable," Sarutobi said, still in a deathly quiet voice.
"Yes Lord Hokage," Hana said quickly as the young chunnin scooped the sobbing Naruto up in her arms and leapt to the rooftops towards his apartment.
The Hokage turned to the villager, now white as a sheet. Naruto had no idea what his choice would cause and that was probably for the best. The last thing the boy needed on his conscience was the death of one insignificant villager. His heart was too big for someone who wanted to be a ninja.
"You know the law," the Hokage said simply.
"P-please, L-Lord Hokage, f-forgive-,"the villager started choking and grasping at his chest as the Hokage focused all of his killing intent on the doomed man. The ninja gathered around him shifted uncomfortably at the bit of killing intent that was leaking out of the old Shinobi and not focused on the man. Villagers began turning white and gasping for breath. A few wet their pants.
The booth owner fell to the ground and started convulsing as his heart began to beat erratically. It continued for a minute that seemed to stretch into an hour until, impossibly, the amount of killing intent increased and the man's heart stopped.
"Take this piece of garbage out of the village and leave him for the wolves. He doesn't get the honor of an actual burial," The hokage said coldly. He glared at the dead man for a moment before turning on his heal and walking towards Naruto's apartment, his robes billowing behind him. A ninja walked over and hefted the dead man over his shoulder. He leapt to the rooftops and headed for the village gates to carry out his lord's orders.
"H-He can't do that," a woman in the crowd of horrified villagers stuttered. A silver haired ninja with his hitaite over one eye turned and looked at her in a bored fashion.
"He's the Hokage. He can do whatever he pleases," Kakashi said simply.
There! That's how it would go.
Peace,
Out.