But it looks as if the driver was cutting the corner. That is not a "mistake" or "not concentrating". When I was learning to drive the instructor told me off about cutting corners. I expect that driver was also told off about it. I bet he did not do it in his test. Probably would have led to him failing. So now, should he be disqualified from driving?
Cutting the corner seems to be 'de rigeur' now - it happens so often round here that some days I think I'm in France such are the number of cars coming round corners on completely the wrong side of the road.
As for the cyclist forgiving, well it's their accident and their decision, but I don't think I could have been so forgiving regardless of how genuinely sorry the driver appeared.
Do the police even need the cyclists permission to prosecute now the video is out there?