It's pretty obvious the old coot is psychotic. His obsession with technology is insane.
Pretty much this. An example of this that springs to mind is Elijah's notion of controlling people through the bomb collars - he does this to you and the others at the Sierra Madre because he believes this is the only way for the team to overcome greed (half right, without collars I doubt Christine or God/Dog would be really that concerned with the gold, Dean maybe and the Courier, depending on the player).
He extends this idea to his vision of a new nation.
An entire nation kept in check by bomb collars? Clearly psychotic imo.