We could say the driver intentionally drove at them and they were scared.
If the driver protests this not true, then he/she is admitting to not being in control of the vehicle. Is that any better?
We could say that and it may be considered slightly better as at least it wasn't intentional, the penalty imposed would reflect the very poor lack of judgement they showed and hopefully they learn.
Tell me what could or should the cyclists have done
I already have. Considering the tightness of that road imo, they could have stopped or stayed slightly further to the left.
cyclists reported that they felt the driving was deliberately aimed at them
They may have felt that but it doesn't meant that's the case.
I 'feel' that this is starting to go around in circles as we all have differing opinions which isn't a bad thing but it doesn't seem to be going anywhere so will leave it a that. I respect your view but cannot see it entirely as you do and vice versa it seems.
To reiterate however, I haven't said the driver is blameless and will re state that the standard of driving was poor and they deserve the penalty imposed. I just think the cyclists can learn from this too.