Well... Daryl Definitely won't kill Merle, nor would Merle kill his brother...
I think they'll figure some way to escape maybe the others will come to help. I mean Daryl and Merle can try to fight the others off maybe get some weapons from them.
But I think Merle might get killed or bitten but I'm looking forward to see what happens if he lives, it might make some good episodes
And I'll join you in that riot, Daryl's the only reason I got through season 2 (And boy am I glad I did)