What a fantastic chapter! Jiraiya finally goes all out and what I found interesting is that we see him directly and purposefully killing the three Pain bodies (something not seen much in the manga).

IMHO, Jiraiya is probably the strongest Sanin. Orochimaru is very strong as well, but most of that is based on heresay. We never really saw him go all out. Jiraiya has really shown some top-notch jutsus the last number of chapters.

Finally we will find out in the following chapters what Pain is all about. It certainly looks like Jiraiya is going down given he just lost an arm. In the end, I think we are seeing the perfect set-up between Naruto and Pain. With Naruto's shadow clones he will be able to take on each body one-on-one. Of course this will likely be after a lot of training or Naruto "unlocking" the seal and "that jutsu".