Sorry, but I don't believe you are in a position to be the final arbiter of who is "wrong" or who is "right". A "street cop" is bound by the legal standards of RAS and/or probable cause which have been established by...........you guessed it..........a court of law! So with that being an established fact, it stands that beyond making an inquiry, a LEO may not take further actions without evidence to support his or her hunch. If the inquiry turns up additional incriminating information, it can continue and possibly develop into an investigation, if it doesn't, the inquiry ends. We don't use a "street justice" system in this country. What this LEO was "possibly" investigating is immaterial without evidence to support the possibility, and you acknowledging the fact that this man had a right to be where he was, when he was there, and then acting as if that doesn't matter is disturbing, to say the least.
I am curious on what grounds you would ask a court to revoke this person's CCW permit? Did he commit a crime? Did he violate a condition of his license? Would you ask them to revoke based on your hunch?
IMO, I don't really think most people here are eager to "bash" police officers. On the other hand, I think most of us have no problems calling a spade a spade. While there is speculation that the driver of this car was up to no good, there is irrefutable evidence of this police officer's outrageous behavior. I don't see how you can fault folks here for recognizing that and pointing it out.