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Out of pure curiosity, haven't Kimimaro and Temari been born yet? I think they were born around this time.
Daigo should take advantage of the fact that Orochimaru hasn't yet experimented with Edo Tensei or Shiki Fujin and go after the Shinigami Mask. It's too dangerous to pass up, and besides, perhaps in Karinna's hands, valuable and rare secrets about the Shinigami could be uncovered.
Since there are no adult members proud of their clan to preserve its "purity," what if, instead of creating a second Kaguya clan in Sunagakure, they treated the Kaguya children as protected civilians and, once they reached adulthood, paired them with civilians? This would be practically what the Senju clan in Konoha did by marrying civilians. In this way, even civilians, who have always been and will always be at a disadvantage in becoming stronger compared to those from prestigious clans, would have more opportunities thanks to a kekkei genkai as powerful and feared as Shikotsumyaku, which would support them and reduce that opportunity gap.
Did Kishimoto or the manga confirm that this was the Kaguya clan's illness, or is it something you made up? Because if it really were simply a lack of sunlight, it would be very strange that a genius like Orochimaru couldn't cure Kimimaro, considering he knows more about the human body than anyone else.
The story was abandoned :( ?
Well, there's no one worthy of being the Seven-Tails' jinchuriki yet... so they could choose him... With the Seven-Tails' constant chakra regeneration to heal its illness, the ability to fly with its wings, absolute defense thanks to Shikotsumyaku, and Daigo's taijutsu training and use of the Seven Heavens Breathing Technique, the result is a true fighting monster, easily at least at the high Kage level.
And if Daigo still can't prevent the entire Kaguya clan from turning into savage lunatics, the most sensible thing to do is let Kirigakure massacre them, but taking Kimimaro with them, since he's the only sane Kaguya (and while they're at it, they should make him Daigo's student because... just because, because I like the idea and because Kimimaro deserves a better life than the one he ended up having).
Perhaps if Daigo demonstrates his strength to the entire Kaguya clan by defeating them all single-handedly, he could gain the loyalty of the entire clan and they would be less troublesome, basically what he did with Kisame.
I wonder if Mei, when she becomes Mizukage, will demand that Suna return the Yuki clan and the other clans that allied themselves with Daigo. I suppose that officially, Suna and Kiri are eternal enemies, on par with Iwa's hatred for Konoha.