Is North Korea really a threat?

With activities like this it's hard to believe it could be a threat, possibly a good place to spend the weekend but not a threat!

Tension has been mounting though. The sinking of Cheonan has been  the cause of the rising tension. The official line from Seoul now is that North Korea is responsible for the sinking.

North Korea has denied any involvement. So what is the feeling like in South Korea? What is it like living beside North Korea? What happens if there is a war?
Watch the video:



Cool video of North Korea: (check out http://www.vbs.tv/ for more cool travel video)
http://www.vbs.tv/watch/the-vice-guide-to-travel/vice-guide-to-north-korea-1-of-3
http://www.vbs.tv/watch/the-vice-guide-to-travel/vice-guide-to-north-korea-2-of-3
http://www.vbs.tv/watch/the-vice-guide-to-travel/vice-guide-to-north-korea-3-of-3