[riri]

I agree with your assessments, however you have left out one very important variable (IMO). The dying and desperate regime will be selling whatever they can to whoever has the cold, hard cash. So, what are we to do about that? Can we afford to let them proliferate to their hearts content?

[maquiladora]

A good point, another reason why NK might want to rapidly increase it's production of nukes is an economic factor.
Rather than keep them in their own stockpile for use against SK, they may wish to sell them to states like Syria/Iran/Iraq/Libya etc. for rather high prices.
If there's one thing NK needs badly it's cash, and lots of it.

[MonroeDNA]

"The dying and desperate regime will be selling whatever they can to whoever has the cold, hard cash. So, what are we to do about that? Can we afford to let them proliferate to their hearts content?

They have been, and will, do that no mater what. If we allow them to survive, by capitulating, they will still do it, only more so.

The SCUDS they are trying to deliver to Iraq are just one example.

If their electricity is off, they can only sell what they have made so far.

If their electricity is on, they will sell what they have made so far, and what they are making today.