I use the toaster oven practically every day! It's just that at the rate of 4-5 slices of bread/week, the bread will go moldy before I finish using it if I don't freeze it. And I would hate to waste bread by making it fresh every time...

I've never tried bagels in this toaster, but I imagine that steaming them might work for rehydrating them to be nice and soft, same as for toast.