Rus: I think Bush is attempting a stepdown from his earlier, and overly bellicose, position.
As much of a nutjob as Kim Jong-il is, I also think he’s crazy like a fox, especially when it comes to playing China and Japan off against each other, and frustrating the crap out of the US.
I think this is best left to South Korea and North Korea to work out, with the support of Japan, China and the US. South Korea could, over time, afford North Korea the opportunity for rapprochement and an eventual unified Korea. China can keep North Korea in line, as can the threat of US action.
I still say the best way to play this is to be Kim Jong-il a liquor store in LA. He likes Jack Daniels, porn and hard cash, so there you go.