Sure, and sometimes insanity looks like insanity to an observer. In this case, I find it very hard to believe that the issue is rights. The drivers don't intend to hit the pedestrians—they're being reckless, not oppressing the pedestrian minority. And if the pedestrians honestly believed they'd get hit, I doubt they'd stand in the middle of the road flipping people off. Both parties are acting recklessly.
I once crossed a crosswalk at a 4-way stop. A car started accelerating from their stop sign. I could have kept walking to "stand up for my rights," but I chose to stop walking just in case the car wasn't going to stop.
Turns out the driver was a slightly older guy who didn't see me at all. He blew right passed me (within a foot of where I stopped), saw me out his driver's window, and slammed on the breaks. If I hadn't stopped, I'd have been hit hard. It's true he would have been the one at fault, but that's hardly some victory. He was a bad driver, not someone purposefully ignoring my right of way.
Forget pedestrians; this is why driving schools teach so-called defensive driving style. Even if you're legally faultless, it's much better to avoid an accident than to put yourself in danger just because you have the "right" to do it. Do you know how many accidents you could cause every day by ignoring safety when you have right-of-way? Standing up for your rights is hardly an excuse to plow into every car that pulls out in front of you.
Sometimes standing up for your rights looks like insanity to an observer.