My neighbor is an independent baker. He makes "regular" bread in various types in addition to pastries.

He closed his retail business during COVID and never reopened it. He reports that it is significantly less hassle to sell directly to local businesses (restaurants, delis, etc.) and their only consumer sales are now made at local farmer's markets. Your local bakeries only sell pastries because they're the only things that sell. The reason for this is broadly speaking that individual consumers are whiny and entitled shitheads, and "the grocery store has it cheaper."

in germany bread baking is its own valuable branch of baking and it's often treated with a lot of sincerity

I know it's not exactly what you're saying, but a lot of grocery store bakeries bake loaves of bread.

That's interesting, there's two bakeries with bread within walking distance from me. But they're not square loaves, it's sourdough and rodeo bread and challah and baguette and focaccia... And rolls, and yes pastries as well. Tbf, I live in Los Angeles so the unusual part isn't variety, it's the "walking."

That's odd, I live in a pretty small city and there are multiple local bakeries. I just wish there was one a little easier to walk to.

Which major city? I bake bread.