And of course not everyone wants to live in such a place, but plenty of people would. And in the US this is fairly rare compared to many other parts of the world.
Unfortunately they stopped building communities like this in the 1950s, but they sprawl for miles around Dublin, and I consider myself lucky to be able to live here.
I've visited cities in the Midwest of the US and found them to be like hell. Can't walk anywhere.
Many people live within 5 miles of one, but usually in denser areas where 5 miles could easily take 30-60 min of travel.
That's exactly the problem. There needs to be more housing built near grocery stores, and more grocery stores built where the housing is, instead of 5 miles away.
Most of us don't go to the grocery store more than once or twice a week. When we do, it's often a big purchase that you can't carry back in your hands or on a small bike. You'd need something with more cargo space.
And no, fresh bread is not really a thing, outside of a few urbanish settings. A healthy proportion of bakeries don't even sell bread - only pastries, cakes, etc.
I can't control the prices of the local store, and so it is efficient to have the ability to choose other stores and thus force them to compete on price.