1) Not everyone knows that primarily Europe uses, as you say, Libyan oil. In fact, this is the first I've heard of it too.
2) There is a difference between Saddam Hussein and Khadafi - The Iraqi people didn't ask for Western support, and they weren't being bombed by their own government - they were just being dragged from their homes at night, like in Khadafi's regime before the revolution.
3) Everyone knows that it's all about ousting Khadafi and installing a puppet government, but a Western puppet government, in this instance, is far preferable to letting Khadafi stay in power. That also went for Hussein's government, true, but it goes for a lot of other governments as well, but the US never touched those, because there was no oil to be had.
4) Thus far, the Libyan conflict has not escalated to ground assault level yet, and this is also not currently the intention. Casualties will be far less than in the second Gulf war. Supposedly, the targets are strictly military ones, and they are all attacked with a stand-off tactic. It's different from letting your own people get shot up in a desert or blown to bloody shreds by IEDs.
5) The intervention in Libya is a NATO decision, made with good reasons, and supported by NATO states - not a single-handed warmongering ploy from one nation and based on lies about weapons of mass destruction and 9/11. True, there's oil and gain to be had, but are you honestly telling me an organisation like the NATO shouldn't stop some mad hatter from bombarding his own people? Well, there is the "NATO as a defensive organisation" argument, but leaving that out of the discussion, surely you'll agree that a large organization dedicated to protect its member states and claiming to operate based on sound moral judgment, can't just shrug when a dictator bombs his own people?
I'm not saying you don't have a point, I am saying that comparing the Gulf War to this one is apples and oranges.