I don't know... It doesn't really sound like a BAD idea but I think its usefullness is kinda limited... but it can be expanded a little... how about some of these ideas?
Maybe we can have baking contests (events)?
As you bake, more and more your baking skill will slowly go up and you'll create better and better goods? (this could be the start of a massive skill system)?
What you bake can be stored in your items and eaten at a later time to refill health? (or to feed to your pets)?
Each Kingdom can have their own bakers
They can create banquets for the King and stuff?
You could use apples and create apple bread, etc
So I guess yeah it could be used to do many things but the usefullness of those things are questionable