This is the best possible outcome, not just for the West, but for Egypt and the Middle East. Mubarak's fall was inevitable when the Army refused to fire on the demonstrators well over a week ago.
It is coming across the news now that Mubarak has stepped down. The Pharoh is gone. A military panel is now in control, along with Suliman. This from the NYT:
The Egyptian military issued a communiqué pledging to carry out a variety of constitutional reforms in a statement notable for its commanding tone. The military’s statement alluded to the delegation of power to Vice President Omar Suleiman and it suggested that the military would supervise implementation of the reforms.
The mob in Cairo is celebrating like its New Year's Eve and the apple just dropped. The real work begins tomorrow. To keep Egypt from going the way of Iran (see here), real economic and political reforms need to occur, and Obama needs to work with Egypt's military to buy enough time for secular opposition to organize itself in Egypt. Perhaps as important, the doctrines of the Muslim Brotherhood need to be fully exposed throughout Egypt. Whether this will be enough will take a decade to answer.