I try to give them a wide berth, but often you find yourself in a situation where you have to give room to either pedestrians or cars, and with me generally the cars win, since the pedestrian is likely to be softer to land on.
It is amazing how often people step out into the road with absolutely no effort to look around, I guess they assume if they cant hear it, they don't need to worry about it.
I was thinking yesterday that on several occasions, the only reason they've stopped at the last moment was because they saw my fairly bright front light in their peripheral vision, that and I was already trying to give them a wide berth.
If they are already wandering across the road, oblivious to all around them, it's often a hard decision whether to go around them on the inside or outside. If they don't see you, often between them and the kerb that they've just vacated is the best option, but if they notice you at the last minute and stop, or worse step back, disaster looms.