This is not good for Gadhafi.
However, this is also not good news for the West either. Gadhafi in recent years has warmed to the Western world, and abandoned his WMD and missile programs his country was devleoping. In response, the U.S. rescinded their name off list of states sponsoring terrorism. They also recently paid back families of victims who were a result of their state-sponsored terrorism in the past.
A vacuum will be created with his departure, and I'm not sure pro-democratic elements friendly to the U.S. would necessarily replace Gadhafi at the helm. Libya is far more fragile politically, and has less to lose with the U.S. and Western country relations than Egypt ever did.
Gadhafi may have been an eccentric dictator, but with no formal constitution, anything could happen, IMO.
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