Exactly... it's that personal touch. Like ninaowens said, a cash tip is fine but it just goes into your pocket and gets spent on bills. When someone gives you something they made, you remember it. You remember them. It feels like a real thank you, not just a transaction. That's worth more than a few extra dollars sometimes.
Years ago I would have seen a cash tip as the only real thank you. That fresh bread actually means more though, because someone took time to make it. It hits different when the thanks is something personal like that. Changes how you see the whole job, you know?
Yeah, for sure! I got a jar of homemade jam once instead of a tip, and it felt so much more special. Like you said, the time they put into it really shows.