First off, congratulations for doing most of the hard work for us-- you have correctly identified more or less the issues worthy of attention, which are:
* Get the savings working for you, ASAP: How firm is your timeline on the house? If it's "We must have a house in two years," then put these into a conservative portfolio (Bonds, CDs, etc.) If you could afford to wait a few years if the market dropped a bit, then consider a mix with more volatile (but ultimately higher-earning over the long run) assets like a total stock market index fund and maybe an international fund. Were I in your situation I would invest in a mix of these, weighted slightly more towards the stocks, since I would be willing to wait a year or two in a down market.
* Utilities: Find an alternate provider and be willing to cancel your service. Play them against one another. I don't see cell or landline phones here, do you guys really have no phone of any kind? If you have one or more cell phones, have you switched to a low priced, non contract MVNO like Ting or Airvoice yet?
* Groceries: $512 for two people (and one pre-person) is insane. Eating like kings, even organic, shouldn't be anywhere close to this. I am sure if you look closely at this there are a number of things you can do without for the sake of your family and child's future. Healthy is one thing, luxury is another.
* Socially Conscious Investing: There is nothing wrong with attempting to consider your morals when making investments. Ultimately, however, you need to take a long, hard look at the fact that this is likely to seriously hamper your gains and over the long run, it's going to leave you with fewer assets, a longer retirement timeline, and at a financial disadvantage to others who are at least willing to invest broadly (ie, a total stock market fund). You say that the investment choice for the IRA was not yours, but you are partners and you should have a say too. You do no have to invest in tobacco and gasoline companies directly, but maybe with your help your husband could see fit to at least invest in a total market fund (where the fraction of "really evil" companies is relatively low).
* Rent: Seems high, but I don't know where you live. Are you living extravagantly rentwise? Is there an option to move somewhere cheaper, take on roommates?
* Transportation: $108 a month is gas is a couple tanks, that seems like a 20-30 mile a day commute or so... could you guys move closer to your husband's work? Could he find another job closer?
I would say largely you are doing quite well. If you're willing to make some sacrifices for the long term, however, I think you could really supercharge your savings before the baby comes and before you're carrying the weight of a mortgage.