Someone I know used to do this with his kids. The 2 kids have turned out to be absolute boy racers and regularly put themselves in dangerous situations on the road, speed, and have terrible road rage - I believe they learned all this from their dad. Now mid-twenties, they've both been involved in several accidents. They also both have a slight vision problem which makes it even worse that their attitude to driving is so bad.
I agree it sets a very bad example to kids. My friend's husband is like this. He drives like a maniac and has done since their sons were tiny.
One of the sons was like his dad. He wrote off 3 cars in his first year of driving. One involved clipping a roundabout at a hell of a speed and rolling the car over with 4 friends on board, how none of them were badly injured I have no idea. He eventually got banned, but it was for being asleep, pissed, in the back of his car. Once he got his licence back, he was much more careful and is pretty sensible now.
His brother was the complete opposite, always careful and sensible and did his advanced test as soon as he could. He said he didn't want to be a dickhead like his dad.
How his dad has never lost his licence, I have no idea. He had 6 or 9 points when he was caught by a speed trap, doing 110mph on his motorbike, along a road that everyone in the county knows is a popular place for speed traps. He hired the proverbial shit-hot lawyer who somehow managed to get him off with a massive fine.