That's great! And no, not an unhealthy amount to lose during Induction. As Black57 said, part of the weight you're losing is water weight--it's always like that when you start trying to lose weight. Later on, though, weight loss usually slows a bit and you won't be losing water.

Low-carb bread can be used and abused. I personally (and this is only my opinion) think it's better to put vitamin-rich vegetables into our bodies than to use low-vitamin (or vitamin-enriched) breads. By nature, wheats have very little nutrition value. I use low-carb bread, but sparingly, like about once a week when I want a toasted cheese sandwich.