All the "special" Uchiha Jutsu with the Sharingan are if you ask me, Nate! And I mostly refer to Izanagi, Izanami, and Kotoamatsukami because of how stupid busted they are, even if the eye loses all sight.
The ones that came out after Amaterasu were OP (especially Susanoo). Izanagi had the potential to be truly OP because Obito’s house of eyes rendered the cost inconsequential, but it didn’t see much use after the Danzo fight. However, OP did not make them dumb in the the way I’m talking about it.
Izanami was stupid in the literal sense. It was stupid in concept and stupid in use. It’s only use was as a plot device to break Kabuto’s Edo Tensei and serve as vehicle for his redemption. It’s hyper specific design meant it had no value or purpose other than this one thing. As an aside, Konoha and Naruto are just not going to ask or think about where he got his “supplies” to make all the Edo Tensei ninja. They just let him run a orphanage as if he hadn’t been a mass murderer who supplied Obito with lots of soldiers and resurrected Madura. No risk there, I’m sure. I mean, if a kid or two goes missing who is going to notice? Crap like this is why the pairing results are, for me, small potatoes.
Izanami presented the idea that accepting ones fate as a positive when there is no reason it had to be or how ultimately this would solve the problem Izanagi presented once the user was free from it. Hell, given it use as a counter to Izanagi how do you even not when to execute it, since the Sasuke and Konon the Barbarian fights really make it seem like its use can only be detected after the fact. A little late then, I’d imagine. Moreover, against anyone but someone like Danzo (i.e. someone who has multiple eyes on hand or an immediate way to obtain more) will usually mean your opponent typically has very limited uses before they are totally blind (not to mention that suddenly losing an eye would itself be hard to deal with considering how vision and depth perception work).
It still makes limited sense as to why this was chosen as the method to counter Izanagi and how one would develop given its cost. It’s so clunky and bizarre in the way its supposed to counter Izanagi, that it borderline useless and probably less effective than what Sasuke did when fighting Danzo (forcing him to burn through most of the eyes).
It was just a bad plot device and felt like it was put in the series because well, we have Izanagi, so I guess we gotta have Izanami too.