NATO has just destroyed 25 Muammar Gaddafi's tanks, that has given a new possibilities for rebels fighting against hes troops. Coalition aircraft targeted Gaddafi's troops outside Ajdabiya, in eastern Libya, and the only rebel held town in the west, Misurata, which has been under siege for six weeks. It seems that sense NATO is doing air-strikes against Gaddafi's troops, it is pretty much impossible for him to win hole thing by just fighting alone.
Best solution under these circumstances and anyway, would be to get solution with rebels where both sides could get what they want for those options that are actually realistic to achieve.
Maybe Gaddafi could have get good solution with rebels, just before no-fly zone was established over Libya. But he did not tried that then, and after that rebels may not be so willing to get solution with him because they see him as loosing opponent.