I was also under the impression at that point that Naruto was rather stupid (ORANGE NINJA WHO MAKES SEXY CLONES, SO DUMB), and I stand by the Chuunin Exam not making any sense and half of the Konoha 11 being lame, but I was eventually coaxed into following the series and realized it was good. That was around Pain vs. Jiraiya, which I really loved, and I also really liked Akatsuki over Orochimaru, so I thought Part 2 was better up until the series really gave up the ghost after Pain Invasion and became a boring wankfest named Uchihas Are Everything.
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Still waiting for your answer to Pain's question, Naruto. I don't think "Jiraiya shot me with his trust juice so I'll definitely find the answer" is cutting it anymore