Madara was right about the Uchiha. He warned Hashirama that the village would go down a dark path: And indeed this is what happened when the village Elders authorized the extermination of one of the founding clans: He also stated that the Nation created by Hashirama failed: And he was right, because the village couldn't foresee any other outcome but literal extermination of a founding clan, and so this nation failed.