That's what bothered me most about that whole twist. I don't give a crap what status level of villain The Mandarin is in Iron Man's rogues gallery because I know for sure he is not a big respected villain in overall comic book lore (he's no Joker, Doc Ock, Green Goblin, Dr. Doom, Lex Luthor etc or even close to them). My problem is IM3 set up Mandarin to look like this bad ass terrorist who delivers creepy threat messages on TV, who dresses like some warped monk, who has a regime of fanatical followers (including kids) who who kiss his hands, he burns effigys of the president, who threatened to murder company executives on TV etc.
That was a much more intriguing creepy villain than Killian. Plus he was played by SIR BEN KINGSLEY, one of the best actors of our time, who was really showing his acting chops as a terrorist villain in those video scenes. Then it all turns out to be a joke. Granted I thought Kingsley was hilarious as Trevor. The man is so versatile in any role he does. But I'd have gladly sacrificed those laughs for an awesome villain.