Well, remember, it's a name in Arabic, which is an entirely different alphabet. Back when we bombed him into signing a treaty with us, the preferred news spelling seemed to be "Qaddafi" but this time around, most are going with "Gaddafi" or sometimes "Ghaddafi." Similarly, it used to be the "Quran" but is now universally the "Koran."
I don't know who decides these things, but I suspect that as AP goes, so go they all. Did you know that the Vietnamese name "Nguyen" is pronounced "Win?" WTF?
~Boar