I didnt say he was going to create life he is going to alter reality as in "create form from nothingness" as was done with the chakra of the Bijuu. The Younger brother's "Vitality power" is only added to breathe life into those forms.
Originally Posted by guy
Itachi is going to alter Kabuto's form similar to how the Sage of the 6 paths did when he created the Bijuu from the Jyuubi. Altering his from is simply where it ends.
However I should point out didnt Tobi suggest Izanagi needed the Senju "Vitality power" to be able to use it. So I guess we can assume Izagami doesnt require that power.