Gaddafi has lost his legitimacy with his own people and he has lost the favour that he courted with the Western governments. He has even lost protection from the 'Arab League' who voted to ask for a 'No-fly zone' over Libya.
Despite all this, he is sweeping away the rebel held towns and cities one by one. He is heavily armed, and despite the desertions in the East of the country, most of the armed forces has not thrown their weight behind the democratic revolution.
Gaddafi has lost. But he will still rule with blood and oil. We have created a monster, and that means the short term prospects for the Libyan people are grim. We can only pray that the cause of freedom will prevail one day, perhaps assisted by the people's victories that now surround Gaddafi's failed regime.