Thanks you guys (and ilikebikes).
I hadn't even considered the fact that if that squirrel had ran out a split second later it would have been in my spokes! That would've been way, way worse!
I rode the path that it happened on this morning during the Mpls bike tour and I didn't see any dead squirrels on the path or off to the side of it. So, either someone dealt with it or he walked away from it. On the tour, I passed a freshly dead rabbit that looked a lot like it had probably been hit by a bike, though!
We set up a new squirrel feeder in our side yard and filled it with peanuts and pumpkin seeds. Then we filled up our two bird feeders with corn and sunflower seeds. So, now our yard has been completely overrun with squirrels. Earlier there were 3 grays and an albino in the feeding area at once! It was very irritating to my cats who were sitting in the window watching them.. I'm hoping to gain back some squirrel karma.
I do feel better, but wow. You just can't help a situation like that. There's nothing you can possibly do to avoid it!