If the road is not wide enough for two vehicles to be safely side by side then I would still side with the OP.
You cannot expect to squeeze past a car that is manoeuvring on a road that is intended for single file traffic. Why should someone in the middle of a manoeuvre have to slam on the brakes because someone has tried to force their way past? I would rather the person parking was left to park properly without hitting anything they are parking between and without being rushed so they end up messing it up.
But as even a no fault claim will hike up your insurance then just get one of those mobile paint guys to sort it. Will probably cost less than your premium hike next year if you claim.
The problem is that road is too wide to make people stop. They will chance an overtake even though it is in reality not wide enough. The left over dotted line from before the parking bays doesnt help.