What Daryl does at this touch is reset, and start a completely new phrase. There's no recover from making an attack fail, he simply steps back, and lets a new phrase begin, where he starts a preparation, Tim establishes/breaks line, etc. This isn't part of the same phrase where Daryl makes his attack fail (where he would answer immediately with his own attack).
I guess Peter Westbrook isn't human, then. The one bout of his that I ever got to watch in person included his going from a full-tilt retreat to a fleche without apparent regard for the laws of physics. ( Or should I say the religious precepts of physics? )
Going from full on retreat to a flèche is actually not as hard as full one retreat to advance(s) lunge. The body's already leaning in that slant anyway.