NK does have its reasons to want to protect itself. The paranoia and ultra sensitivity? Is it really paranoid to be nervous about the US rattling its sabers on the NK border? Ask the countries bordering Russia if they are paranoid about its military build up on their borders or if they are being understandably nervous.
The only way out of this tension is diplomacy, and by that I mean real diplomacy where the US, including the President, hold out an olive branch to NK and begin talks to reassure them that we don't want their little stinkin' country. Will we persuade them to get rid of their ballistic missiles and nuclear bombs? Probably not. But if we were allies or at least neutral, NK might relax.
Granted, I don't know a lot about their history or what has led to the present tension, but diplomacy is all that will solve it, if NK will play.