I think Libby will survive. She has her own agenda. Libby was in the same mental hospital that Hurley was in. And he was there after sinking a dock that killed several people. I think one of those people was Libby's husband/boyfriend or family. She had a mental breakdown after that and discovered she was in the same hospital with the man who ruined her life. She starts plotting her revenge on Hurley, and after they're released follows him to Australia. But somewhere along the way, she learns of Hurley's big Lotto win and adjusts her plan a little. She decides to get close to Hurley, make him fall in love, marry her. Once she has his money, or gets him to tell her about the numbers - THEN she'll off Hurley.
Libby's out of touch with her feelings, her character is one to watch.
Ana Lucia had killed one of the "others" - the people living in the tents. She was a threat to them, had made them angry. Henry was also one of the "others", an outcast. Like the rest of the tent people, he was found unacceptable for Dharma's experiments and was forced to live outside in the jungle. Apparently, Henry had been a little too long in the jungle and had devised a secret plan of his own, a plan the "others" didn't like.
The "others" might have made a deal with Michael - to go back and off both Henry and Ana Lucia - and they would help him break into the hatches and get Walt back.
Or possibly, this was a deal made by the Dharma people themselves. To go back and get rid of Henry in exchange for Walt, BUT, if Michael tells anyone about them, the deal is off. Michael shoots the two women - Libby was an accident - then wounds himself to make it look like Henry did it. The shooting of Ana Lucia would enrage the Losties enough to kill Henry.
Henry was their ace in the hole, the exchange - if Michael had killed him, he would have had to explain about the deal with Dharma and lose Walt. But Dharma will never give up Walt, not if they've discovered Walt's extra abilities.
Just my humble thoughts.
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