Quote Originally Posted by DB_Hunter
Doesn't anybody think it is strange that whilst Madara, founder of the Uchiha clan and a founder of Konoha, is killed by the First yet the Uchiha clan still survives?

I think there is something like the Hyuuga clan family system running in the Uchiha also, except that with the Uchiha the difference between the two branches is political rather than a master to slave realtionship that exists in the Hyuuga.
Yes, but you're thinking about it too much. The Uchiha clan descended from the Hyuuga clan. The Sharingan is a (stronger) variant of the Byakugan, as explained before the time jump. Indeed, this means that Madara was a Hyuuga before founding the Uchiha clan. Was he a Head family member or a Branch family member? If he was a head family member, we can assume that he continued the tradition, and that the survivors/slaves suppressed it after his death. If he was a Branch family member, things become unclear and possibly very exciting.

... Does Itachi know Madara = Tobi?
Probably. Itachi is his accomplice and student.