No, we should never negotiate with terror threats
However, there was a time when the US and N Korea could probably have talked and made some headway, the posturing of its leader notwithstanding. Instead, IMO Bush waited until it became a terrorist threat. I just don't think he was minding the store very well. I know there were other issues that seemed more urgent, like invading Iraq. I believe it's one more time where the administration has shown a lack of foresight.
Here's to hiring a few psychics for the State Department.