Everybody knows that the only Factol who made it through the Faction War unscathed was Rhys of the Transcendent League... right? But wait! When the Lady banished the various Factols, she banished the Factol of the Bleak Cabal, too... but at the time, it wasn't Lhar! He was in the Mad Bleaker ward of the Gatehouse, having temporarily given control of the Faction to Spruce - and it was SPRUCE, not Lhar, who got mazed by the Lady. So theoretically, Lhar could make it through the Grim Retreat and lead the Faction again... except for the fact that it currently is defunct. Nowhere do I read of Lhar having died or anything, so...?
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Yep, that was my reading too. The Bleakers aren't a faction now, but Lhar could return to help run the Gatehouse once he's done being insane. The former Bleakers are still in Sigil, and though they've ended their faction organization, they haven't surrendered their beliefs.
Of course, that doesn't mean that Lhar's plan to escape from the Grim Retreat will work. Maybe he'll just stay crazy.