He could become more idealistic. Since he doesn't understand hatred, he might strive to create a world where everyone gets along without any grudges. This would make him a very different kind of hero compared to the Naruto in the original series.
Perhaps Naruto would become more isolated. If he doesn't understand hatred and constantly tries to push his view of peace on others, some characters might start to distance themselves from him. This would force him to re - evaluate his own beliefs and either double down on his non - understanding of hatred or start to see the importance of acknowledging it, which would be a significant development for his character.
Anko might develop a softer side through her interactions with Naruto. She has a tough exterior due to her past, but Naruto's unwavering optimism and kindness could start to break down her walls. She could become more open and trusting towards others in general.
For Naruto, he could develop more understanding of the darker side of the ninja world through his interactions with Tayuya. Tayuya, on the other hand, might start to see the value of friendship and loyalty like Naruto has. For example, Naruto's unwavering belief in his friends could rub off on Tayuya, making her question her previous solitary and somewhat ruthless ways.
Another possible development is that she gains the ability to transform into different forms not just for combat but also for communication. For example, she could take on a more human - like form to better interact with the villagers, which helps to bridge the gap between her and the humans and also shows her adaptability and evolution as a character.
For Naruto, he could develop more in terms of his leadership skills. In fanfiction, he might learn to be more diplomatic when dealing with the different clans in Konoha, especially when working with Hinata's Hyuga clan. He would become more of a unifying figure, not just a powerful ninja.
Naruto could develop more maturity under Tsunade's influence. Tsunade, being an experienced and strong - willed character, can teach Naruto how to better control his emotions in difficult situations.
Naruto himself might develop a more global and cultural understanding. He starts as a ninja from the Hidden Leaf but as he becomes the 'father of Asia', he has to learn about different Asian cultures, religions, and traditions. This could make him more diplomatic and patient.
Naruto might become more confident. Being a dragon gives him new powers, and with that comes a sense of self - assurance. He may also become more solitary at first as he tries to understand his new form. But as he gets used to it, he'll start to integrate his dragon side with his ninja self.
Tenten could have a character development arc where she gains more recognition. In the original series, she sometimes seemed in the shadow of the more prominent characters. In fanfiction, she could be given more important roles in missions. She might also develop a unique fighting style that combines her weapon expertise with some form of elemental jutsu, making her a more formidable force in combat.
Naruto could become more confident. If the leotard is a symbol of his connection with the Kyuubi, wearing it might make him feel more in control of his power. He might start to take on more leadership roles in battles or in his village.
Naruto could also develop his diplomatic skills. Suppose there is a situation where the village needs to make an alliance with another village and Naruto, Hinata, and Hana are part of the diplomatic team. Naruto would have to learn how to negotiate and communicate effectively. Hinata could develop her ability to sense danger on a larger scale. Maybe there are threats to the alliance that she needs to detect. Hana could develop her ability to adapt to different environments. If they travel to another village for the alliance, Hana would need to adjust quickly and use her skills in new and unfamiliar situations.