This topic has yielded very helpful info. Thanks for your posts.
Looks like the trick is to get a bigger bore master cylinder, so less travel.
I don't feel spongyness in the brakes, so I don't think my brake fluid is bad (I've experienced this on another car). I have thick/almost new pads, so not much fluid in the lines. Now I understand why warn pads means less braking power though, thanks!
I'll have to check out the bronze bushing. I know older toyota corollas have very hard core braking, very very responsive. I've also driven new mazdas and they have very firm responsive brakes. I hope to make my E30 just as firm and responsive if possible.