VSD to physical to VSD probably is applicable to situations where you know the attacker and/or are constrained by one's situation.
I have only done this at work -- subduing rowdy participants with only enough force until they cooled down or are removed/restrained. BTW, these are the situations where jujutsu/aikido locks and such are really useful.
I think in a street scenario, one should simply nullify the threat and get out of there. No need to engage any further verbally once the person's attack is stopped. If you wait around, he may get back up with a weapon, realizing that he can't take you without an "equalizer." Or, he may have confederates who finally noticed or arrived at the scene. Either way, if you stick around, you may be forced into a deadly force level.
The situation you described actually happened to me several years back. (I posted this a couple of years back.) In the Christmas rush, I turned a corner and bumped into someone. I knocked his beeper from his hand and sent it flying. He whirled around, took an aggressive stance and said, "WHAT THE PHUCK!" I simply said, "Sorry." He was still standing there in an aggressive mode. With my hands open and facing him, I walked towards his beeper, sunk with my knees and picked up the beeper, all the while looking at him. I handed the beeper to him with a reach and he had to take it with a reach (basically keeping the appropriate distance -- "largo mano" in FMA parlance where only the weapons/hands can touch each other. I said, "sorry, man.", and backed out of there. I really felt the less verbal stuff out of my mouth, besides a few words of apology, the better. I didn't want to convey aggressiveness or weakness, but just to acknowledge my fault in bumping him.
[This message has been edited by david (edited January 18, 2001).]