There never should have been a referendum to begin with, and the idea that a simple majority vote could have such dramatic consequences was frankly actually undemocratic.
Based on how entrenched certain positions are (see the DUP, for example), the (rightly) strong opposition to a No Deal, and the fact that ANY deal is going to make a majority of people unhappy, it would seem there is no majority in Parliament willing to be connected with the actual outcome.
Therefore, it seems the most likely scenario by far is simply an extension. That will probably lead to a General Election or a Second Referendum, where the "choice" can be said to be given to voters, which would also give MPs cover for any decision made.
The EU will not decide against an extension either, as their preferred outcome is the UK remaining in the EU. The longer this drags on, and the more impractical Brexit options are shown to be, the more the likelihood the UK decides to remain increases.
The only way I see the UK actually leaving the EU is if hard Brexiteers decide to back May's deal; however, that would be considerably more politically risky for them than simply continuing to take a hardline position — even if the end result is remain.