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A military parade does not showcase one man's ego, but is a display of power to those enemies who only understand the most primitive form of communication, in order to act as a deterrent. Better a parade than a war.
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Or maybe Kim sees Trump as a babbling fool who continues to create the fear of a strike/invasion of his country so he keeps on with building his nuclear arsenal.
Maybe you need to find out who O'Neill is.
It's not about who he is. It's about what he said. It was an ignorant thing to say.
Kim has been doing that even before Trump became president! Kim got used to past Presidents treating him ever so gently. Think poker. Kim - and others - can read the likes of Obama and Clinton like braile. Liberals are easy to fool. That's why the USA wasn't being taken seriously under these leaders.
Trump, on the the other hand, is unpredictable. That's part of his game.