I don't really have a problem with Kakashi's eye teleporting the explosion. Seems like a natural extension of the Mangekou sharingan's abilities. If the god of the moon allows a person to manipulate time and space within the subconciousness of their opponents then it makes sense for the god of the sun to involve some sort of physical manipulation of the real world. Just like Itachi used it to escape from Jiraiya's frog stoamach and Kakashi used it to blow off diedara's arm. Seems to somehow affect corporeal space and time but it's increadibly training to pull it off.

One thing I'm still pissed about is how the hell did Kakashi get the mangeyou sharingan in the first place. His sharingan is fricking bootleg and he dosen't have the blood line or the uchila body to take full advantage of it. So how the hell did he get mangekyou? He didn't kill gai. Did he find some other way and if so what is it. Seems like a pointless power up that kishimoto through in to make Kakashi cool again since he lost alot of his mystique after he got his ass owned by itachi.