Iago is talking about how some leaders aren't the best leaders and people who follow these leaders are pure stupid for doing so. He said instead of following these bad leaders they should pretend to follow them in order to get what they want. He said he doesn't really care for Othello and just pretends to like him (and do what he wants) so he can get his way. He said he isn't what he claims to be.
Iago wants to appear false to Othello so that he would be more believable, ironically, he tries (and succeeds) in playing the concerned, lowly friend. He wants Othello to think that he has flaws and that he feels guilty for letting him know the 'truth'. I don't think Iago uses rhetoric to convince himself, I think he is just out for blood and he doesn't really care about his personal morals or character
I agree with what you were saying. I don't know about the rhetoric because i personally didn't find any either, but i'm sure that its there somewhere.
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