Interestingly Iran has never threatened to attack Israel by military means except as a response to an attack. All Iranian leaders have said, and that is solely playing to some Arab street sentiments, is that the "regime" in Israel will not survive long run. The hyperboles and extrapolations are mostly fanciful propaganda tactics by some Israeli politicians and friends. So who is crazy here ? Netanyahu and Barak are playing crazy. But it is the US that has put the knife in their hands.
About 2,000 demonstrators protest 'occupation policy and fascist settlers' in Nazareth (Haaretz)