What a freak accident! I'm glad the cyclist wasn't seriously injured. Kudos to the pilot for taking responsibility and offering to compensate the guy for damages.
I operate a Phantom drone commercially myself. Most commercial operators do not have an FAA waiver to fly over a congregation of people. The congregation in this case it was the cyclists. I'm not certain the pilot was flying over them this time. I think he was off to the side. If he had been over them he wouldn't have hit the tree. This incident has received a lot of press, but after going through 12 pages of google searches looking for another incident like this I couldn't find another story about a drone hitting cyclist. However, I did find a video of a guy hitting a deer not too far from the Golden Gate Bridge. Horrible crash. I would be more worried about hitting wildlife than a drone.