I do not have an axe to grind here, but I'm a cyclist of several decades' keen riding and I encounter the conditions in the OP's clip regularly.
I do not cross into the opposing traffic lane if there is oncoming traffic. Not in a car, not on a bicycle and not on a motorcycle.
I was taught when young to avoid taking unnecessary actions that might cause another road user to alter their speed or direction to make room for me. Crossing into the opposing traffic lane when it's occupied seems to fall into that category. Some will disagree, but it seems to me that it is a matter of courtesy as much as anything.
I've been spooked when cycling to see a car approaching me being passed by another on a single-carriageway road. It can be unnerving on an NSL road. In terms of the clearences available, the OP's video presents a similar scenario, although it is the bicycle encroaching rather than the motorist.
I commend the OP for having the guts to post the video and ask for thoughts. It is not a terrible, ghastly or criminal piece of riding. It is not even bad. One sees it done every day. Well done for posting and asking as you did, but I would try not to ride like that - and if I did I would not look to blame the driver (who appears to be ill-mannered at best) for driving rather closer than he might to me. He does seem discourteous in his driving and could probably move further over, but these things happen.
The Internet is full of squawky helmetcam warriors who bleat about close passes. Some are rightly indignant about shocking driving and some are looking for an argument. Many make the point that bicycles need a certain amount of room when being passed. By filtering in the opposing traffic lane when there are moving vehicles in it, a cyclist chooses by his own actions to limit the distance available to make a close pass.
The driver in the clip is closer than he needs to be (perhaps dangerously and stupidly so), but even if he were scraping his nearside kerb he'd be closer than many would want him to be. For the sake of our collective blood pressure, why do that to save a second and a half?
I've had fewer accidents than hot dinners, but not by much. I am not considered a kerb-hugging or particularly safe rider by those who know me... But I don't filter in the oncoming lane when there are moving cars in it.