Konoha was far more powerful than it had been in the original storyline.
Yanbai figured the Second Shinobi World War would have a hard time breaking out.
Even if the Four Countries wanted to plunder Konoha out of poverty, they lacked the strength to do it. They were not only poor now, but weak too-a truly miserable state of affairs. Their daimyō were torn as well. Without funding their Shinobi Villages, they could never defeat the Land of Fire, but if they did provide funding, they feared the villages would usurp their rule.
No news of Madara Uchiha's death had reached the outside world. Instead, rumors that Madara had gone back into seclusion were everywhere.
After all, before Hashirama Senju died, they had all thought Madara Uchiha was dead too. Now that Konoha had held no funeral for Madara Uchiha, didn't that prove he was still alive?
Madara Uchiha's very existence was a deterrent.
Beyond Madara Uchiha, the tailed beast military exercises had also shown the major Shinobi Villages that he was not Konoha's only trump card.
As for the tailed beasts that struck terror into the outside world...
Yanbai had visited them all.
Shukaku the One-Tail still looked like a spherical raccoon. He had become the Ninja Academy's mascot, and the children respectfully called him "Director Shukaku."
The teachers and children at the Konoha Ninja Academy often took it upon themselves to feed Shukaku snacks.
Shukaku visited all sorts of classrooms every day and attended lessons alongside the students. No one knew whether he was diligently studying or simply joining in the fun.
Then, when the children had practical combat classes, Shukaku would squat beside the arena and provide sound effects for their small-scale ninjutsu.
Whenever a child used Wind Release, Shukaku went, "Hah! Ptooey-" "Hah! Ptooey-" "Hah! Ptooey-"