My mother always said "let them have their own accident somewhere else."

If someone is driving unsafely around me, I absolutely feel offense and the desire to punish them in some way, but it seems best not to do so. Unsafe drivers probably won't learn anything good from other drivers no matter how the other drivers respond. If you try to create consequences, the other driver may well escalate - for example, as you described, passing on the shoulder and creating an unsafe situation for others; but also possibly by taking issue with you personally and acting to endanger you directly through various methods.

So in summary, if someone is driving unsafely around me, my goal very quickly becomes getting the lack of safety away from my passengers and myself as soon as possible.