okey now look, This explination was wroted by atriede, but it is exactly how I would explain it myself. And it should put the whole thing about the Uchiha 1 on 1 thing to it`s place.
Chiyo says that in a one on one fight against an Uchiha, your only option is to run. This is ludicrous. Is she suggesting that in a fight between yondaime and an Uchiha, that the most exemplary Shinobi Konoha has ever produced should simply run. Or is she suggesting that Jiraiya flees if he is in a one on one against an Uchiha. Correct me if i'm wrong but isn't an Uchiha the one who flee's from Jiraiya in a fight, even though that Uchiha (Itachi) actually has a two to one advantage against Jiraiya. Or was chiyo perhaps suggesting that a Shinobi of white fangs calibre, or the Third, should flee on sight of an Uchiha. You see, this is why I think the Uchiha's are sometimes over hyped, there are many ninja's who will defeat an Uchiha with the same ease that a Hokage would defeat a Chunin or a Genin. For Chiyo to make such a comment is therefore an over exageration of the Uchiha's power, made up in order to hype up the sharingan (and that comment doesn't even take Kage Bunshins into account, she simply ignores the fact that someone could use a clone to counter an Uchiha, even ignoring the fact that she is talking to someone who actualy uses clones as his signature move*Naruto*)
The Third, Jiraiya and Yondaime do get a lot of praise but sometimes people talk of the Uchiha's as if they are the end all and begin all. However this talk conveniently forgets the fact that Shinobi's of a high calibre such as Hanzou (guy who pawned all three Sanin at once) or Sarutobi (formerly known as the god of all Shinobi) would defeat an Uchiha with ease. In effect the Sharingan gives an Uchiha a slight boost in ability in a fight, however that ability is not significant when facing a Shinobi who is talented enough or knows how to counter the Sharingan. Note that no Hokage has ever been an Uchiha. So it annoys people sometimes when people talk about Sharingan users in a false/artificial way.
The uchiaha strength lies in the law of averages. Whilst some clans produce exceptional Shinobi (and by exceptional I mean to the standards of yondaime or the Third), Uchiha's produce shinobi who are not quite on that level. Most clan members of the Uchiha are pretty average, the sharingan boosts their power a bit, not enough to be as exceptional as say the Third Hokage or Jiraiya, but enough to make them colectively strong. There is nothing special about that, al they are, are a bunch of shinobi's who are only slightly above average because of the Sharingan, of course because of this, they will be more powerfull than other clans, but that is only because they win on the law of averages.