OP - You did the right thing. No need to waste your time and energy for such people as they make up almost 95% of Pakistan's population. These people will never learn and this is the reason why we continue, as a nation, to go down and down. We are and will remain an uneducated, unethical and a failed nation. There is nothing you can do to change this. Even if you had shot the guy his chicldren would have grown up with same attitude and disrespect for others. You kill one 'beghairat' in Pakistan and 3 others will take his place. This is why I see it as useless and futile to try and change them. It is a hopeless situation.
Remember, if you care for other people and respect them then you are a minority. It is a big deal for you that he swore infornt of kids but for our majority awam, this is routine. They do not have the manners or the etiquettes and they never will! The worst part are the educated people, because they know good from right and then choose to take the wrong way. It reminds of the saying that 'You can lead a horse to water but you can't make him/it drink'. So you can educate our awam but you cannot make them a better person, a better human or a better Muslim. Best is to ignore and carry on with your life. Few days ago someone posted that he had a bike accident and the other guy pulled out a gun infront of his family.
Just pray Ayat-Al-Kursi when you leave home and leave rest to Allah