I am from California and in my previous line of work I interacted with many physicians. Not once, did I ever see any bias towards DO vs. MD and I questioned several well respected MD's on their feelings toward DO's. I know of one large specialty practice full of Stanford and Yale docs who just recently hired a DO. I think the bias is maybe seen at the teaching institutions, and maybe from some uneducated or pompous docs who simply don't work around DO's. For residency, I wouldn't count on places like UCSF or Stanford, but they are a breed of their own and they will look down their noses at most other medical schools (DO or MD) simply because they want the Harvards and the Yales.
And let's not forget that a lot of the older-almost-ready-to-retire docs used to be DO's, but paid $35 (or whatever the price was) to switch their titlte over to MD many years ago...