Yes, that's the implication - or threat. Iranians are putting the idea out -- more as a trial balloon to gauge our possible responses.
Ahmadinejad wants to know what we'll do - and the Mullahs and council members want to know.
Ahmadinejad's not the only player in Iran - there's lots of oil rich Mullahs. And Mullahs don't want to be vaporized. Death is fine for the true believers, but not for the corrupt, rich, indulged Mullahs. Nope, old Ahmadinejad will have an accident before he'll be able to martyr the Iranian corrupt ones...
And our response? The American response? We're laughing at the bluster and overblown threats... It comes across as silly. Old Saddam and his mother of all battles ... little fish in small ponds thinking they're sharks. It's funny. Sad too. Rich nations with thousands of nukes and strong militaries can afford to stand back. We've done the "flash" before - and killed millions - we can do it again. But it's not personal - it's not what we want. And if we must kill the Iranians it'll happen, but it'll happen without threats and bluster. No blood running in the streets rhetoric, it'll happen with quiet and sad resignation - and precision.
I think our strategy is basically to hope that they use the a-bomb on someone else before they use it on us, so that we can justify attacking them with our own a-bomb.
But that assumes that they'd use it. They might just threaten to use it, and blackmail our trading partners to cut off the flow of oil.