Forget about kakashi BS, once kage comes out you literally will never use him again.

Upgrade iruka like you mentioned, if you need more initative you can get refines but i'd advise against it, since you should be able to obtain green ones for free from other sources. Use spare points on summoning scrolls, they seem to have the best investment:gain ratio from all those items, and they will always contribute to your power/ninjas via summons. Also, one step closer to super rare summon at 2k scrolls :)

ps. curiosity - whats in the bag in the wheel?