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I've been following this all day and while it's disturbing that they did it, I wasn't that surprised.
Interestingly, most experts are suggesting that their nuclear threat is minimal. The main reason is that they haven't been able to make the bombs small enough to put on their missiles. That means they'd have to carry it in a plane and there is little chance that they'd be able to get through the extensive air defense of the US or Japan.
On the other hand, they have the ability to lob tonnes and tonnes of conventional warheads on Japan and South Korea. War heads also containing biochemical and/or radioactive payloads. This would wreak massive havoc not only on those two nations and their people but also the world economy.
Of course to do so would be suicide as the counterattack would wipe them from the map.
This was about two things:
1) trying to get a better position on the bargaining table
2) messing with the leadership of Korea which is currently reeling from the death of their previous Prime Minister. The current leadership's charges of corruption were deemed to be the cause of the former PMs suicide. This test will further shake the Korean's faith in their current leaders (or so the North would think)
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"My hands are on fire. Hands are on fire. Ain't got no more time for all you charlatans and liars."
- Old Man Luedecke
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