In the past, I thought he was mostly based on Frank Costello, with the raspy voice, Long Island mansion, and political connections. But, I have to reluctantly admit that after reading Bill Bonanno's book, he convinced me that Vito was based on Joe Bananas.
The huge wedding between Bill Bonanno and Rosalie Profaci, with Tony Bennett singing, was comparable to the opening wedding scene with Johnny Fontaine.
Vito retiring and passing the reigns to Michael was reminiscent of Joe handing the torch to Bill.