Yes on all counts. I had a Cuisinart 7-cup food processor for years and LOVED it for bread. It kneaded many loaves over the years and it was still going strong when I gave it to my daughter. I upgraded to a 14-cup thinking I could make and knead two loaves at once instead of the one loaf made in the 7-cup model. It really does not do the job. I am thinking of purchasing another 7-cup model just for bread.
This processor has done a WONDERFUL job of "doing" my bread for many years. You'll find that you'll probably end up making 2 cup loaves with this unit for an 8" loaf because it does such a wonderful job of blending the dough. As for cheese, yes. I think it would do a great job with the attachments. Mine has always done EVERYTHING I've asked of it.
One reviewer said it would practically be full after adding 3 cups of flour to the processor. This worries me because a lot of bread recipes I see call for 3 cups of flour and more (including 1 cup of water, yeast, etc). Do you think this processor could handle it? Would it overflow? I'm trying to choose between this and the 9 cup but I'm leaning on this one.