The villains would have diverse reactions too. Garou might see the fanfic as a source of inspiration for his own 'evil' plans. He might think that some of the ideas in the fanfic could make him an even more formidable foe. However, if the fanfic makes him look like a complete fool, he'd be enraged. Deep Sea King would be confused by the fanfic, not really understanding the concepts that are different from his simple view of the world. But he might also be intrigued by the new versions of himself presented in the fanfic.
Yes, there likely is. The Naruto and One Punch Man fandoms are both quite large, and it's common for fans to create crossover fanfictions. These crossovers can be really interesting as they combine the unique elements of both universes, like Naruto's ninja skills with Saitama's one - punch power.
I'm quite sure there exists a 'Naruto is One Punch Man' fanfic. The world of fanfiction is vast and full of all kinds of creative crossovers. Writers might be intrigued by the idea of bringing Naruto's ninja skills and the unique world of One Punch Man together. For example, how would Naruto react to the overpowered villains in One Punch Man's world? And how would Saitama view Naruto's determination to protect his village? These are the kind of things that could be explored in such a fanfic.
One Punch Man is about a guy named Saitama who can defeat any enemy with just one punch. But despite his amazing power, he struggles with the boredom of having no real challenge.