I don't think he's particularly interested in what the Western world thinks, he's just playing to his constituency basically. On top of that it'll go down well with a lot of other middle-eastern countries particularly those bordering Israel. Just seems like political maneuvering more than anything else, although the holocaust denial did seem pretty retarded.
I've got to admit to being quite ignorant on the creation of modern Israel but he does have a bit of a point: from the Palestinian point of view it's not really fair being turfed out because of European problems.
It also seems CNN missed out the part of the AP article where he
criticises the US for refusing to sell them things like spare parts for aircraft, resulting in US-made aircraft crashing and killing hundreds of civilians. And Iran is expected to trust the west to send them enriched uranium for their nuclear power plants? I can understand why they're insistent on enriching it themselves, of course then it gets everyone elses knickers in a twist because the process can be used to create nuclear weaponry.