Forgive me, I have not read all of this thread but here's my two penny's worth.
1. It happens. Every now and again we all do something we are not proud of. Good on you for admitting it. But then again, it doesn't sound that bad (although of course none of us - not even you it seems - know exactly whay you said to this person).
2. My oft used reaction to this situation is to beckon the driver towards the bumper of the car in front as if I am guiding him into a tight parking space. Then thumbs up and cycle on.