I agree with you, Riverwalker, that an initial response of, draw the gun, when someone gets upset is not good. But, I can definitely see how as soon as a potential confrontation looms ahead, it's very sensible to start thinking out the moves in advance. This situation should cause one who carries to consider his options if things go south. But I don't think that's what's here.
I don't think the OP is beating himself up over retreating, which was the right way to handle the situation, but rather he is simply pointing out that leaving his EDC at home could have been a costly mistake had things gone differently.