I sympathise with the driver - it is difficult to get a good fix on how fast a bike is going - you know it's too slow to follow but getting past needs a bit more speed or length of road and that isn't always easy to find. In this case, both the cyclist and the driver failed to read the road ahead - one of the rules I learnt years ago was to not drive or ride into a closing gap. Both of them should have seen the traffic island and both could have avoided the side by side situation by easing off and letting the other ahead. If you're on a bike, it's a good thing to work out who is going to come off worst when you decide what to do.
The real culprit here was the road designer who thought that getting a bike lane and a traffic lane side by side into a sub 3m wide space would work.
That said, losing it is something that seems to be a first resort to some people and we really need to get away from that state of mind. We all make errors of judgement and most of the time, no-one gets hurt so why not just accept it as that?