Board Thread:Naruto Discussions/@comment-24347194-20150319225910/@comment-17623-20150320103449

Tobi was the better villain because we actually saw him orchestrate his plans in the story proper. When Tobi 'revealed' himself as Madara and took an active hand in trying to get the Eye of the Moon Plan off the ground he had a lot of in story activity to further his goals, which included killing and manipulation. Because his method of fighting was exactly 1 way (His Space-Time Migration) he presented a very clear way on how one could fight him and how one could not, which made fights against him interesting from a readers perspective.

Then you have Madara who while orchestrated everything before his death did nothing in universe until he was Reincarnated and later revived. But then instead of being complex villain like Tobi, was more or less just an impossible to beat wall of death against any and everything put in front of him not named "Hashirama". There was no real suspense watching him do anything because we knew he would win.

Note I said "Tobi" and not "Obito". Once his identity was revealed, Obito pretty much lost all the "good" villainous qualities Tobi had and just became a tragic monster, and I'm hesitant to call him that as well because (in my opinion) his reasons for his actions were all incredibly petty he just came across as a weak villain overall in the end.