It's an open question whether Bolton's throwing all the cards up in the air is meant to improve the council or to prove that the UN can't reform itself and therefore should be abandoned.
As western governments improve relations with Libya, they should press the government to improve its respect for human rights. Libya's cooperation in fighting terrorism should not mean carte blanche to commit abuse.
When Western governments try to use economic pressure to secure human rights improvements, China's no-strings rule gives dictators the means to resist.