Ok, first off: it doesn't matter if they were standing around or not. It doesn't give the driver any reason to run people down like that. If you feel that that running down pedestrians is acceptable: please either a) never get your Driver's license ever or b) please get yourself over to (preferably by walking, since you cannot be trusted with even a Bike, it seems) the nearest DMV and turn over your license. That said: those people that were "standing around" were spectators for the event. You can clearly see them taking pictures, or watching them go by. This should be indicative of a parade going on, and the road is currently in use. Please find an alternate route or let them pass in peace.
OR if you have a brain in your skull, you COULD ask one of the patrons to let you pass. I don't care if this guy is deaf or not; that doesn't give him a pass to be a dick and to run over people. You do realize that he could've killed the old lady he DID run over? Or he could've killed a pedestrian? I mean, it's obvious from your comments that you're quite dense, but common sense should dictate that the driver was most certainly in the wrong.
I could only see the way the driver should get a pass is if his car was being swarmed and attacked by the parade-goers. THAT would be the one time where I would fully agree and give him the pass. But that's not what happened here.