I really don't see a good way for this to end. If this thing turns int a free-for-all, anybody could come out on top, but somebody's got to be able to take charge. The military is completely incompetent, so it won't be them. There don't appear to be any popular opposition leaders. It seems like they're destined for a power vacuum.
As for outside involvement, it seems like the two things they need is border security and air suppression. Given the ineptitude of the Libyan air force, anybody could keep them grounded (one way or another). Securing the borders sounds like it'd be a lost cause, though. Moammar's got a gazillion dollars to spend on African mercinaries, and I don't see how they could be kept out.
What a mess.