"Reality often brings people back to earth pretty quickly. The two states are technically at war, and there's no consensus in South Korea on how to deal with this, just as there's no real consensus in the US on how to deal with North Korea," said Andrew O'Neil, dean of the Griffith Business School at Griffith University in Australia.
"A mistake is often made that there's a hunger for a resolution at almost any cost on the part of the South Koreans. I think there were quite a few South Koreans who are very wary of [South Korean President] Moon Jae-in's attempts to reach out to the North," he said.
It's not clear whether Pyongyang, pleased with the diplomatic wins it sustained during the two weeks of the Games, will pull back, resume its missile tests, and continue with aggressive rhetoric towards not only the South, but also to South Korea's ally, the United States. It has already reacted hostilely to fresh US sanctions, calling them an "act of war."
Some North Korea experts believe the Olympic pause has given the regime valuable time to work on its nuclear program and that another launch is simply a matter of time.
What matters then, is whether that diplomatic progress is obliterated with another launch, and if the North is prepared to lose that leverage at this point in its renewed dialogue with the South, as the US continues to look to tougher sanctions against Pyongyang.
On Monday, after meeting with Chinese Vice Premier Liu Yandong at the presidential palace in Seoul, South Korean President Moon Jae-in said the US should ease its position on preconditions for talks.
"There is a need for the United States to lower the threshold for talks and North Korea should show its willingness to denuclearize," Moon said in a statement.
Talks with US?
Moon said that he'd met with the North Korean delegation in Pyeongchang before the closing ceremony of the Winter Olympic Games and told them that North Korea-US talks should happen "as soon as possible." Moon in a statement on Sunday said the North Koreans agreed that "the inter-Korean relationship and North Korea-US relationship should develop together."
"We should not take them too seriously given that the North Koreans themselves have not made any public announcement that indicates any willingness to put their nuclear/missile programs on the table as part of a dialogue," O'Neil remarked. "Remember this is a US precondition for any meaningful dialogue."
The White House responded with cautious optimism to Moon's statement.
"We will see if Pyongyang's message today, that it is willing to hold talks, represents the first steps along the path to denuclearization," the White House said in a statement.
"In the meantime, the United States and the world must continue to make clear that North Korea's nuclear and missile programs are a dead end," the statement continued.
Joseph Siracusa, a professor of human security and international diplomacy at RMIT University in Melbourne, Australia, said it wasn't clear what the North Koreans in Seoul were prepared to do to advance peace talks.
"What we do know, is I'm sure that the people who are going to the meetings are empowered to make some move on this," Siracusa said.
The two sides will discuss the North's involvement in the upcoming Winter Paralympics. The talks will be held in the border village of Panmunjom on Tuesday at 10 a.m. local.
Propaganda victory
The Winter Olympics, says Siracusa, was a "propaganda victory" for Pyongyang. "They got themselves invited, they didn't have to pay the bill and for a couple of weeks they looked normal," he told CNN.
Most importantly, he says, North Korea's successful Games appearance -- cheering squads, a friendly Kim sibling and no defectors to the South -- also succeeded in driving a wedge between South Koreans who want reunification and rapprochement, and those who don't.
"The North Koreans want reunification, but on their terms," said Siracusa. "The South Koreans would rather have a confederation with these people than a nuclear war. And this has also complicated the South Korean alliance with the US," he said.
"I think it has complicated the life of President Moon and whether he will do something with the Americans," he continued. "Moon has a promise through the Americans to talk without preconditions, but sanctions aren't going away until the North Koreans do something positive. What does that mean? It could mean anything."
Moon in the middle
Eurasia Group said in a briefing note it believed it will be difficult for Moon to sustain support for a North-South summit. It quoted several polls showing South Koreans' dissatisfaction with his decisions including the formation of a joint women's hockey team (over 72% opposed it), and having athletes march under a single flag (only 40% supported the move).
"Moreover, a Seoul University poll in January found only four out of 10 respondents believing that unification was necessary," the group said in a statement to the press. "Young people in their 20s and 30s are the most opposed to the idea of reunification."
The political right, the Eurasia Group argues, has been keen to criticize Moon's handling of the Olympics. "Kim [Jong Un]'s decision to hold a military parade on February 8 reinforced suspicions among conservatives and the broader public that he is not acting in good faith."
Undeterred ambitions
"I hope that this will lead to an improvement in inter-Korean relations -- not only inter-Korean relations, but we also believe that there has been slowly, but gradually, a growing consensus on the need for dialogue between the United States and North Korea," Moon told reporters on February 17.
"We hope that the dialogue between the two Koreas will be able to lead to dialogue between the United States and North Korea, and eventually denuclearization."
"The latest US sanctions, which envisage potentially boarding North Korean surface vessels with force, were accompanied by a thinly-veiled reference by Trump to using military strikes if sanctions don't work," said Andrew O'Neil. "This is nothing new in US policy, but it does serve as a major reality check in the afterglow of the Winter Olympics and hopes that Inter-Korean relations may be entering a new phase."
The bond between the US and South Korea is what analysts like O'Neil believe North Korea is trying to fracture. "I also think it's probably a way for the North Koreans to push out further the prospect of military action from the US, because as long as the North is seen to be engaging with the South, they're not testing missiles," he pointed out.
It also gives the North an opportunity to continue to seek funds from the South, and any other accommodations it can get while wrestling with sanctions and maintaining its refusal to de-nuclearize, he added.
"The South Koreans aren't fools either," said O'Neil. "They've been down this path many times before."