Talk about an understated reaction! (since she's just kicking him out of the Painted World) I would have just slayed the insolent fool on the spot.
The odd (and kinda hypocritical, now that I think about it) thing is that I did something similar in my playthrough... Only, I didn't care about what's under her skirt.
Also, I felt so bad after killing her, (and what for!? Only a pair of weapons I don't use any way!) that I have abstained from doing so during every playthrough beyond the 1st.