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@cliveo
If this was the USA, you would probably face a lawsuit for failure to warn that the bike had no brakes, was dangerous and should not be riden without experience and foot retention. As you are in England, however, you can sue the toe-rag for the damage to your wheel and if you suffer any psychological disturbance as a resilt of witnessing the incident, for the pain and injury so suffered. It seems unlikely (and i hope you haven't suffered any pain or suffering) that you will be able to claim for the latter count but it would be nice to sue the little blighter in the small claims court.
I think that your reaction is exemplary and echo Will's comments. It would still be nice to see him sued.