Understanding the situation of Nepal, I can say that King has tried to save his crown, which is in danger. The common Nepalese don't wish him to see him as the king anymore. Nepali janata want freedom from autocracy of the king. Perhaps, King Gyanendra is the most unpopular king among the Nepali people, Nepal ever had. He'd understand the wishes of the people and leave the decision to the people what do they want. He'd leave the crown and finish the monarchy system immediately! PS
There culd have been nothing better than Nepal heading towards multi party parliamentary elections. King's call for elections was inevitable but now it is up to political parties to sustain democracy in Nepal. Political parties will be given one more chance to prove themselves as pole bearers of the democracy and if they fail again in sustaining democracy by keeping check on intra and inter party differences then in my view they do not desereve to have multi party parliamentary democratic system at all.