Honestly, I think this is mostly symbolic - the economic cooperation between the two governments is about as minimal as it gets anyway, and the tourist scheme was already suspended for nearly a decade. Presumably there were no near term plans to resume the scheme, so it’s not going to bring in any more money for the north. Might as well axe the legislation to give your rival the middle finger if it’s not useful otherwise.
I think it would be an enormous strategic error for NK to engage in war any time soon, given China’s military is not in a healthy state, and Russia is busy in Ukraine. A direct conventional conflict with SK would be extremely difficult to win with the difference in technology, even with their enormous military spending.
And nuclear weapons are, frankly, much more effective as a deterrent than as a weapon itself. Firing them on SK will inevitably trigger response fire from the US nuclear weapons stationed on the peninsula.