There is one thing missing in your analysis:
Time
North Korea hasn't had all diplomatic options exhausted yet. Unfortunately for Iraq, they have. 12 years, and despite what some in this thread have said, they were still giving U.N. inspectors the run-around, and telling them where they could and could not go. That's the one thing that bothers me about the Iraq situation and WMD's - why the run-around for over a decade if you had nothing to hide? It just doesn't sit right with me.
Anyway, back to my point, until recently, North Korea has been fairly compliant with the U.N. However, in recent history, the U.N. has again shown it is weak - North Korea acts up, U.N. says settle down, North Korea demands concessions on U.N. restrictions, U.N. gives in and says ok, and North Korea pipes down until its time for another outburst.
Even so, it shows some concession, until Kim recently decided they were going to get Nukes, and the hell with everyone else. Thus, there is some room for diplomatic negotiation, which is what people who say "why aren't they taking the same approach with South Korea as they did with Iraq?" fail to realize. They fail to realize that diplomacy was tried for a long time in Iraq, and conversely, that it has not been tried as much in North Korea, until the recent 'nuclear' events. It's like trying to open different doors with the same key, and wondering why your key only works with one door - and expecting it to work with all the others, when all the key was meant to open is that one door.
And FYI - I am surprised no one has noticed that Axis is trolling here - check his name, and brush up on WWII history, and then check what he is spouting. I would have thought it would be fairly obvious by now.
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*Joren, Legend, Alleged Egomaniac, Thread-Killer, 2-time Ban Recipient, and 6th Grade Spelling Champ*
*Joren, Legend, Alleged Egomaniac, Thread-Killer, 3-time Ban Recipient, and 6th Grade Spelling Champ*