Peace treaty with North Korea, has the US lost its edge?

I suppose it comes as a bit of a suprise to most people focusing on the negotiations with North Korea, but the US has begun "working on a peace treaty to take place on a parallel track with six-nation talks on disarmament, it will signal another major change of tactics." This for me is shocking as i thought the US was not going to budge with North Korea. We have yet to do so with Cuba.... could this signal that perhaps their nuclear program(NK) is not the threat we all thought? or is it that the US has tied itself down in Iraq and faces a new threat in the axis of evil chain, IRAN who does pose an imediate threat to the middle east, both Isreal, Iraq, and large amotuns of oil. see link below to NYT. I myself have long suspected it would come to this, as the aritcle mentions as well.

http://www.nytimes.com/2006/05/18/world/asia/18korea.html?_r=1&n=Top%2fNews%2fWorld%2fCountries%20and%20Territories%2fNorth%20Korea&oref=login