Kim surely has to realise that no matter how far he catches up to the rest of the world with respect to defense technologies, he can never win. He may be a crazy dictator, but he still wants to make sure that his position remains and that it's comfortable/low risk as possible.
This is all a facade, in order to scare the world into responding with a "oh yes sir, we respect you now ... Now, how much money/resources would you like?" Of course this won't happen, but it's the end game that he has to play for. There's no other way, the PDRK would eventually fall, it's just a matter of time in this modern and highly connected world.
If violence is the only answer in the end, it should only be directed at a small handful of people. It would undoubtedly spill over to more than just that, but large scale warfare isn't the way.
Just my two cents :)
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