To start, I'll quote here another author of OS, Koshersalaami:
"... to deal with a guy who's said he wants to obliterate another nation from the face of the Earth, particularly when that nation is the same people (singular noun in this case) who were victims the first time around..."
I highly suspect, if Ahmadinejad ever said that 'he wants to obliterate another nation from the face of the Earth'. I've read that according to trustworthy translators, he actually quoted a previous religious leader of Iran saying: "The Imam said this regime occupying Jerusalem must vanish from the page of time".
He particularly did not say that he or his administration would like to annihilate Israel, but that Israel's current administration would disappear by itself or by an act of God or by other happenings his administration wouldn't accomplish. His choice of words can of course be interpreted not to be very diplomatic, but he seems to have selected his words not to tell about any actual threats from Iran's side. Just the opposite; he seems to have meant his words to convince his own country people that Israel will not attack Iran, but Israel's present unfriendly regime would change by itself.
More about the issue from:
Speaking at a D-8 summit meeting in July 2008, when asked to comment on whether he has called for the destruction of Israel he denied that his country would ever instigate military action, there being "no need for any measures by the Iranian people". Instead he claimed that "the Zionist regime" in Israel would eventually collapse on its own. "I assure you... there won't be any war in the future," both the BBC and AP quoted him as saying.
And asked if he objected to the government of Israel or Jewish people, he said that "creating an objection against the Zionists doesn't mean that there are objections against the Jewish". He added that Jews lived in Iran and were represented in the country's parliament.
In my view the turmoil in the Middle East concerning Iran's relation with Israel is purposefully created by some American politicians who want to start the war against Iran. They are creating the problem to Israel, because Americans cannot easily again declare a war against the nation, which haven't attacked them (even if they have done so in the past for example against Afghanistan) so they are trying to get Israel to perform the first attack and in general to use Israel as one of their main bases in the fight. After Israel's attack Americans would join to defend Israel from Iran's counter attacks.
I have written about this issue before. My viewpoint concerning the military issue of that planned war is that Israel alone couldn't easily win the war against Iran. Iran wouldn't stay silent, but would hit back and hard.
Furthermore Iran has got allies like Hezbollah and Hamas near Israel. I think that both recent wars, the war in Lebanon against Hezbollah and the war in Gaza against Hamas were purposefully planned and arranged to prepare for the war against Iran.
From the military viewpoint Americans and Israel lost both those wars. Hezbollah was able to show that they can get in their hands such accurate missiles, which can hit any place in Israel. In Gaza Israel (and Americans, who supplied the bombs) tried by bombing to close tunnels, which could be used to bring advanced missiles and other weapons to Gaza. Some tunnels are still there.
The recent aid flotilla incident is a part of 'the game', too. Israel is suspicious of the aid ships that they could be used for supplying weapons to Gaza. Israel had declared the blockade, so the people in the ship knew that Israelis will come to the ships to inspect them. It would be too naive to expect that all the people in the ships were just peace activists. It was too easy to put there other kinds of people, too.
The encounter in the aid ships Israel and Americans seem to have lost, too.
The key point to understand is the role of Turkey. Now the ally of Americans and Israel, Turkey seems to be shifting a bit away from the alliance, which is an unconvenient alliance to them, because they have got close ties with Iran, too. I think that this outcome was the prepared and desired outcome of the battle from Americans' and Israel's opponents' side. It is as well possible that Israel wanted purposefully to punish Turkey and Turkey can't do anything but to pay the ticket for being friendly with Iran...
Needless to tell again maybe. I think that the whole thing going on in the Middle East is arranged by American empire dreamers, who want more wars. It is everybody's advantage to avoid further wars. It is Israel's advantage, too, to start building friendly relationships with Iran and with everyone.