I just made suggestions to a co-worker on this- he's moving back from overseas w/ a wife who doesn't drive and wants to eventually live w/in walking distance of a bakery.
My list included:
Highland Bakery (though I've seen not-great mention of it)
But for any of those, or even Whole Foods, you'd have to hit it right to get hot bread. If you catch it when the delivery guy is bringing baguettes to some of the Asian/Vietnamese markets on Bu Hi, those can be really good, too.