Some real bakeries put themselves out of business, by only making crap that might have been popular 20 years ago. That happened around my place. Sorry, I'm not interested in polish pastries that were liked by my neighbours' grandmother, who died in the 1990s.
OTOH, new bakeries that make good tasting stuff and who have kept up with times have thrived. They charge more than the supermarkets, but it's worth it. Mind you, not everyone in all neighbourhoods would agree. The high end bread loaves are $5+ now, and that doesn't go over well in lower income neighbourhoods, when you can get an approximation of those high end bread loaves for $1 less in a supermarket.
As for bagels, we have a true bagel shop here in Toronto near my workplace, complete with the wood oven. They have a decent selection, but the selection and availability is more in Montreal. I never buy grocery store bagels, because they taste like cardboard, or at best, like a bun. If I want a bun, I'll buy a bun, not a bagel that tastes like a bun.
As for Tim Hortons, I am disappointed with them. At least they used to make their own doughnuts, but no more, and they don't taste as fresh as they used to. But it should be noted that it's not as if Tim Hortons was ever really that "good". Its main draw is that it's cheap with mainstream drinkable coffee, and OK donuts. As for their muffins, they aren't so good and never have been, or at least haven't been very good in the last 20 years.