OK, my clear coat on the rear passenger side (small area) is coming off and it looks like crap....what should I do?

Not much you can do short of having the whole panel reshot in clear. If it were me, I'd try wet sanding the area with 1500-2000 grit paper about 6 inches past where the paint quit flaking off. Let the area dry, tack it off and spray some areosol clear coat over the dulled area. Just a few light coats. Let it cure in the sun for awhile. Come back the next day and buff the area with a medium cut compound to blend it a little better and to cut down any overspray. Then maybe clay bar or buff the whole car to bring the gloss out of everything so you don't have a fresh area that doesn't match. Depending on what color your car is, will determine how well it'll blend. The lighter the color the easier it'll blend.