It is the Gaddafi government which is delusional and has consistently reported as "facts" the most fanciful and clearly fabricated lies. This has been shown time & again. For instance, the idea that the rebellion is composed primarily of drug-crazed, al Qaida-led armed gangs has been thoroughly debunked by reporters in rebel-held areas. The NYT article indicates that the killings in Benghazi appear to be isolated and are being duly investigated by the authorities. There also seems to be an element of possible revenge involved.
Some elements of the rebel security forces have contributed to the discomfort. Mr. Benour, the justice coordinator, said that his office was investigating abuses, including thefts, by the Force for the Protection of the Feb. 17th Revolution, which has official responsibility for arresting Qaddafi loyalists. He said the leader of the force had been suspended.
He said there was no evidence that rebel security forces were implicated in the killings, but admitted the crimes were still a mystery. Salah al-Hami, who was tortured by Colonel Qaddafi’s security agents in the 1990s, said friends had told him he was suspected in the murders of the former Qaddafi officials. Years ago, members of the Hami family were repeatedly jailed as security agents searched for Mr. Hami’s brother Mohamed, a leader of the Libyan Islamic Fighting Group in the 1990s. An uncle and three of his brothers, including Mohamed, were killed by the security services or died in Colonel Qaddafi’s prisons, he said.
These are nothing like the wide-spread abductions of youth which have reportedly taken place in Tripoli and elsewhere Gaddafi's forces are in control. These have been hard to document in Gaddafi controlled areas because reporters are not allowed to travel freely w/o minders. Some estimates place the numbers in the thousands. Under those conditions, as well as under existing Libyan law, there can be no legal opposition parties. How could there be a fair election under such circumstances?
The condition for Gaddafi's surrender is reasonable because his state rule is based on thuggery and intimidation. By all accounts the initial protests in Tripoli were indeed popular and widespread until the government cracked down on them in February. I have seen nothing to indicate that Gaddafi has the active support of anything but a small fraction of the Libyan population.
I do think that the rebellion will succeed w/o the need for NATO ground troops. I think the tide has turned on Gaddafi, and it's not a question of if he'll go, but when.