The saying goes, 'nip it in the bud' I think you have a subconsious desire to kick your dogs butt over this! LOL Badger does this occasionally and I feel your pain. I don't let this slide, just as you said you didn't. I may be going against the grain here but I think this is somewhat normal. Not to be tolerated, but not something you should be terribly worried about (I'm assuming you may be terribly worried because when Badger has done this, it has shaken me pretty bad).
Personally, from my experience with Badger, I think some dogs have agression inside them, and it is through effort, love, and respect for us that they control themselves. If Badger 'forgets himself' I call him on it, every single time. His usual response to me condemning him is that he ducks his ears down and back and acts very submissive. He only does this kind of thing once in a great while, usually over very covetted treats.
I agree with what the other poster said, with the exception of the treat in the mouth thing, thats just me, I'm already too 'close' to this dog...we're not doing mouth on mouth food swapping. LOLOL Badger would LOVE that.
Good luck, I think you handled this exactly right.