I wouldn't call it lying at all. Chances are, Kabuto was not aware of this loophole. Orochimaru MIGHT have, since he made sure he had full control over the Second, who of course would have known the "magic" seal to make himself an immortal Kage, but there is the chance he didn't. As a result, he believed that there was only one drawback to this technique, and confidently revived the most powerful and greatest Uchiha in history!
The poor kid had no idea what goblet he drank from, so now we are getting his outhouse results. >.>
Madara with trollface on as the Kage stare in shock and horror as he doesn't vanish like the rest.
Last, and certainly not least, you could teach all of Konoha the jutsu, then wipe us all out, then bring us back via the technique. THen we'd be the super army that could raid Kumogakure for it's bijuuuuuuu!