The only thing worse than a dude with a Napoleon complex is a senile megalomaniac and his son the shaved Ewok with both a Napoleon complex and a rusting Soviet arsenal at their command.
I suppose it bears remarking that the neighbours are having a moment. What's the odd artillery shell between (bitter, estranged) brothers, right? Well, now that the global balance of power is - regionally, if not nationally - up for grabs, no government wants to look soft, especially when their assailant is the maniacal, mangy village idiot starved halfway to madness. So, in the international game of King of the Hill, soft power & compromise take a backseat to saloon diplomacy, which is unhelpful to those of us who wish neither to be shot or blown up, nor to shoot or blow up other people.
But I'll be damned surprised if this fracas leads to war. North Korea's only ally is China, while South Korea have been occupied by an American military presence for over fifty years. Both China and the U.S. stand to lose their asses if Sino-American relations turn actively antagonistic: how could American remain in China's financial pocket if Americans stop buying all the cheap shit the Chinese manufacture, which in turn fosters the economic growth that allows China to buy up U.S. debt? Who would want to disturb that glorious Moebius-strip of bitter commercial codependency?