He is a deluded cunt, but that's the way that entire POS arc is written. For example:
"red eyes" - it's part and parcel of the whole idea that some writers have had of showing red flames coming out of Clark's eyes for the last 10-15 years as proof that he's some bad ass.
And, in this case, for Lex, it's proof (even if 99.9% of the time Superman's eyes are just plain old blue) that he's an alien, who view humanity (e.g. LEX) as a nuisance.
AND, because people look up to Superman, or view him with hope, this is the end of "out dreams" (again, e.g. LEX's dreams) and the end of (again) LEX's potential.
Deluded cunt is that anon being kind.