We've predicted this since it became clear that Libya was a quagmire. Unless NATO wants to send in ground troops to physically remove him, there was no way the rebels would ever be strong enough to depose him. Hence, a deal to stop the fighting would have to take into account Gaddafi staying in Libya.

CNN:

France may consider a post-war Libya with Moammar Gadhafi remaining in the country if he quits politics as part of a cease-fire deal to end the conflict with the NATO-backed rebels, the French foreign minister said Wednesday.

"One of the possibilities is that he (Gadhafi) remains in Libya," Alain Juppe told French news channel LCI. "But on the condition that he stays away from Libyan political life. This is what we are waiting for before we begin the political process for a cease-fire."

State-run Libyan TV played an audio message from Gadhafi Tuesday saying that he will never surrender. He also called on civilians and armed citizens to march on rebel territories in the east and west of the country to "cleanse it from mercenaries and traitors."

Meanwhile, the war intensified in the eastern part of the country. Libyan rebels have completely surrounded a strategic oil hub in the region but face an almost impossible task of dismantling thousands of landmines planted by Gadhafi forces, a Libyan rebel military spokesman told CNN Wednesday.

Did anyone mention to the French that Gaddafi is not exactly known for keeping his promises?

There is something pathetic about a once great alliance unable to bring to bear enough military power to dethrone one, half-crazed, tinpot dictator.

Someone should put NATO out of its misery.