A part of the agreement was being fulfilled, which kept Odenâs hope alive that Kaidou would eventually leave the country. As Kaidou himself pointed out, Oden had changed. He used to act recklessly and didnât care about losses, but he returned from the sea a different man. He tried to solve things without bloodshed, and instead of sacrificing people, he chose to spare them and sacrifice himself by dancing so they could be saved.
On top of that, when Oden decided to confront Orochi in the castle, he was completely alone. He wasnât even remotely prepared to face Kaidou at that moment, so agreeing to a peaceful approach was the better option.
He wasnât losing much by doing so. People were being saved while he danced, and even though Wano changed visually, the samurai were still there, ready to be used against Kaidou at any time. The problem is that Kaidou made his move first by killing Hyogoroâs family, who was one of Odenâs strongest allies.
After that, Oden decided to go to war against Kaidou, but Orochi had already anticipated this and had a spy among the Red Scabbards, something completely outside Odenâs control. Who could imagine that among his most loyal retainers, one of them would betray him?
His plan was good: kill Kaidou while he was drunk and asleep on the island, without causing the deaths of thousands of innocent people.
At no point was he foolish.