Boy, did you call it right. Although, I think the Governor started having second thoughts about Merle's "loyalty" when Merle asked to leave to find his brother. The Gov didn't seem to like the "competition" of Merle having someone other than him (Gov) that he felt loyalty for. So, now what? Since you read it so right before, what do you think will happen between Merle and Daryl? Will they fight, or will they both team up against the Governor?
I think they will both be rescued and Merle will get his last chance at redemption at the prison but will die there defending the prison from the citizens of Woodbury.
He’ll never be a truly good guy but will die somewhat of a hero in the eyes of Daryl.