I initially wanted to keep LVG until the end of this season and then let him go in the summer. I thought that LVG would still be able to have stumble to 4th place with no trophies, just like last season (although even 4th place would have been a very disappointing season IMO). But with our recent form, our awful football, and our players generally looking lost, I think it's time for LVG to go. This isn't just a recent stretch, it's relegation form for the past 10+ matches. This has become very reminiscent of the Moyes era. LVG even downplayed the club expectations recently, just like Moyes did.
However, this season is still salvageable, and we should ensure that we have CL football next season, as it makes a tremendous difference in attracting talent/manager candidates, and the money we get from it. I don't know if Ancelotti would be willing to take the job mid season, but surely, Giggs can't be any worse than LVG as an interim manager till the end of the season. At least Giggs will probably get this team playing better football, and the results can't get any worse than they are now. Also, I'd imagine that Giggs is a lot more well liked than LVG by the players and personnel anyway.