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It is hard to define 'soft' and how far it travels on a forum, but the Gen 3 is known for this issue.
The car should stop wihtout a problem even if the pedal is a little soft or travels a bit too far.
If the car has problems stopping, then you have an issue.
#1 Check for leaks
#2 Check the pads back and front for excessive wear and proper adjustment
#3 Bleed the brake system to get out all the air and to put in clean fluid
See where you are after those 3.
I had my 1995 V6 Camry fail state inspection because the brake pedal was too soft. I appealed to a higher inspector and the guy in charge of state inspections for my region PASSED the brakes after drving the car for 2 minutes. He even said it was a known "issue" with that generation of camry, but was not a safety problem, he just needed to drive it to be sure it wasn't extreme.
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