I don't think the no-fly-zone or any international intervention is going to happen. I don't think any of the leaders actually want to intervene at all and are only "pushing" the no-fly-zone just for show. The rebels are simply vastly outgunned. It's all over for them.
After Libya fails the other protests in other countries will cease. In Tunisia and Egypt after a few months of "Spring" they will either return to Business-as-Usual: powerful autocratic elite, corruption, suppression of free speech, or violent jihadists will seize power, thus automatically discrediting any future "populist" revolution in the Middle East as dangerous and destined to fail in the eyes of the rest of the world.
Not quite in Benghazi yet, they did reach Brega. I've never expected anything good out of what was going on in Libya, Qaddafi is too entrenched and too ruthless to be easily overthrown. Plus he was willing to fight if challenged, while the others wanted only to safeguard their accumulated loot.
But something did change in Tunisia and Egypt, those two are not going back to the old "business-as-usual". It's too early to see what will happen there, but what has already happened, the partial collapse of its regimes under popular pressure, can't be forgotten. It shows, among other things, that prolonged "peaceful" protests can do more than outright fighting, "jihadi" or other. Who knows what might have happens in Libya if assaults on military bases and the split of the army hadn't precipitated a civil war so soon? Once those happened, and they happened too soon, the government there could then make some claim to legitimacy in fighting back... timing is key for revolutions. The libyan attempt at revolution was precipitated. As thinks stand now, some "rebel leaders" are already joining the government side, showing the whole thing to have had at least one aspect of failed palace coup, an attempt by some power brokers there to ride the wave of arab revolutions.
About the latest news, who really holds Brega, I'm more inclined to believe the government version. I don't see how the rebels could retake the city, capture and transport a handful of government soldiers from Brega to Benghazi, with government troops in the road between the two. Looks like a desperate attempt by the rebels at looking strong in the hope of getting outside help. But no one who mattered even planned to give them help, they were just useful to provide a distraction from other revolutions in the arabian penninsula - Bahrain is a nice parallel: shouldn't saudi troops there count as "mercenaries"? Now they don't even have that use, as Japan's multiple crisis took all the headlines and seems poised to hold them for weeks.
