chapter not found?
I'm sure he meant the annihilation of the leaf just like his own clan was. Why would he only destroy it politically? This is sasuke we're talking about. He'd kill his own flesh and blood but not those he's unrelated to?
A village is a sum of its parts. The citizens of konoha are as much to blame as the leaders, since it's the citizens that give rise to them. If the leaders of Konoha can justify killing every man woman and child of Sasuke's clan, I'm sure Sasuke can do the same for Konoha village.