A few thoughts:
-He had a huge adrenalin dump (fight or flight) when you surprised him on his left (his fault of course, but still his adrenalin is flowing)
-You then "lurk" around in the immediate area of his home. He knows you know where he lives and wondering what you were subsequently going to do is what probably set him off
-You were an unknown quantity before he confronted you (potentially scarier) than coming after you straight away and finding out what is what. The male in most wants to deal with shit NOW. F--- flight, he was "home" psychologically speaking, the only option is fight.
He is a nuts to come after you with his kids in the car, but I think a little bit of misguided parental protectiveness kicked in.
Good decision on your part. If you were bleeding out in the gutter the fact he was near his home with his kids would bolster his self-defense claim (or if you killed him...
in front of his home, in front of his kids hock.gif...not good for you) and that evil martial arts knife you possessed would certainly come into evidence also. This guy would get acquitted (if he even got charged) I'd bet. Had you "won" and he was in the gutter... you're younger, bigger, away from home, no kids, going to lift weights? 'roid rage maybe? I'd ask you that if I was the prosecutor, the suggestion alone would register with the jury. You would have a very long time to contemplate the value of saving face.
Road ragin a-holes should all brandish knives. Free get out of jail card for a shooter when he drops you [not you kaizoku] with a 230 grain hydra-shok to the brain pan.