I don't get it. Why would the cyclist think he had the right of way? Is it because he could do the most damage between the bike and the dog?
BTW, poor dog. Whenever I see a cyclist walk his dog that way, I usually see the cyclist casually riding while the poor dog looks like he's running the last mile of a marathon.
Not that it doesn't work for certain types and breeds of dogs (especially those breed to race like greyhounds). However, it doesn't quite work well for short leg and/or stocky dogs.
Anyway, hope your wife gave him what for. Jerk!!!