Hi, maybe I have some ideas that could help you make your next attempt at a similar scene better.

First one basic thing: The metering system of the camera is trying to find an exposure setting where the average brightness of the frame is grey. If you mix dark areas (like shadows under trees) with bright areas (like sunlit clouds), your camera can't show them both with detail. You will likely get black shadows and all-white sky. You simply have to choose what to expose for. In this shot the main subject (the bird) is in the shadows and you would probably like to have some detail in the shadows. Then you will basically have to live with blown highlights in the sky. I would say in this case the exposure is OK.

When it comes to depth of field you're right that a narrow aperture will make more of the scene appear in focus. However f/29 is kind of extreme, I would say in this case you would have been OK with f/5.6-f/8. DOF depends heavily on distance to subject: E.g. if you focus at a very close subject, you won't get much DOF even at f/22 (or f/29). On the other hand, if you focus at a subject relatively far away, anything relatively far away within the frame will appear to be sharp. In this case you were at 29 mm focal length and the distance to the bird could be 10 meters or so. If you focus at 10 m with focal lenghth 29 mm I guess everything within the frame will appear sharp more or less regardless of aperture.

So, the next time you're shooting landscapes, set the camera to Av with f/7.1 or so - this will be OK for most shots (provided you want large depth of field). If you have enough light (like in this case), set ISO to 100. In daylight this will typically give you shutter time around 1/500 sec which would be OK for freezing many action scenes. In a case like this I would have chosen f/5.6-f/6.3 (enough for DOF at 29 mm and speeds up the shutter a bit) and maybe ISO 200 if the acion was really fast.

(What the camera did for you when you set it to Av, f/29, was that it calculated the proper exposure at ISO 100 that would have been around 1/8 sec. The camera thinks this time is too long at 29 mm focal length and increases ISO to 500 just to make it easy to take the shot without motion blur. This means that you get at shot where the static scene is rather blurry due to diffraction caused by the narrow aperture, and the bird is blurry due to the long shutter speed.)

Keep on shooting (and sharing)!