When that happens, I normally slice the bread and throw it in my toaster oven on low for 45 minutes, then break it in pieces and use the blender to make it into bread crumbs, which I freeze for use in meatloaf, meatballs, breaded chicken, etc.
I've just come across another use for not-so-perfect bread: bread pudding. Pumpkin bread pudding, actually. It's like a lighter, faster pumpkin pie. I found a recipe online , (leaving out the currants and nuts) and, wonder of wonders, my husband and all three children devoured it!