Fitz definitely loved Panhandle.
By the end of the final series anyway that much was clear. And from the moment she realised he'd been sleeping with Panhandle, Judith had always known it. Although I don't think Fitz truly realised it until the end, by which time so much had happened it was too late and Jane had become too distanced from him and resentful. Fitz being Fitz let her down as well, and she was never as forgiving as Judith. You always got the impression that Fitz - naturally - felt an incredible amount of loyalty and duty to Judith, and that it always prevented him from going for what would have made him happy in the end. Even after Judith cheated on him with Graham, he still didn't begin anything with Panhandle until he believed his marriage was over. Then of course Judith returned pregnant which after her rape and the previous standing up at the airport and being messed about, was the final straw for Penhaligon.
Fitz and Judith's marriage was so bleak by the end of the final series I still find it incredible that they then remained married and swanned off to Australia as shown in the 2006 special! He still loved Judith, just maybe not in the way he once had, and I think it was always made quite obvious at the end that he wanted to be with Panhandle, but circumstances and his own actions had meant it was never going to be. Panhandle's "I don't love you, Fitz" to him in 'True Romance' was never fully convincing to either him or the viewers, but after everything that had happened she was never really going to go back there and resume their affair. For Panhandle, getting over the rape and Beck's suicide also meant finally getting over Fitz and starting a fresh. Hence why at that point she also announced her resignation from the police.
Anyway, even after all these years, Fitz and Panhandle still remain a fantastic on-screen pairing - Cracker wouldn't have been half the series it was without their relationship. Still unforgivable that Geraldine Somerville didn't feature somehow in either of the drossy special one offs.
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