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Well, you could try bleeding the system and re-adjusting the pedal to see if that makes a difference. You said the engagement moved, so adjusting the pedal would definitely be worth a try before anything/
Otherwise, i think your clutch is near/at the end of it's life. You said it's done 90k miles? I assume that's still on the factory clutch and that seems about right for a clutch's lifespan.
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Camry history:
1990 Camry CS 5spd - Now scrap metal
1994 Camry Executive A/T - Burnt to a crisp.
1995 Camry Vienta Csi A/T - Still running
1999 Camry Touring 5 spd - Current
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