Well I have had these pads on my 95
axxis metal master
EBC green stuff
Akebono ceramic (OEM I am told)
My brake pedal had the same feel with all of them.
I live in the state of VA and a few years ago the state inspection changed to measure the brake pedal clearance after it was depressed. My camry failed miserably by the state inspector's opinion. He figured the brakes needed bled, I paid about $60 to have that done on the spot and it didn't help.
They then told me that I needed to replace the master cylinder and the brake booster (major $$$$$) so I figured it was a scam. In VA the state police actually run the state saftey inspection but the inspectors generally work in an indepedent auto repair facitlity with little supervision (I knew this from a problem I had with a Nissan in an inspection years ago where I felt I was being ripped, I met with and worked it out with a state police inspection official).
After this inspector failed me for the state inspection for the 3rd time for the brake pedal clearance/ spongy feel I called him a thief (I THOUGHT he wanted the master cylinder - brake booster repair work profit so he kept failing me) and told him I was going to call the state police and talk with his boss.
He said - OK, hold on I will call him for you (in a real cocky way). He whipped out his cell phone and called right there. Just so funny enough his boss was the SAME state police official I dealt with years ago on my Nissan issue.
NOW HERE IS THE POINT OF MY LONG WINDED STORY
I went and met with the state police, the regional boss of all the inspectors in my area, he said that the majority of camry's they inspected FAILED inspection for this exact problem. Usually a brake bleed fixed it, but they had seen dozens of cases where the pedals were just like mine and the brakes worked perfectly fine they were just a little soft.
Bottom line, he inspected and test drove the car and pased me on teh spot. The state of VA inspectors office has an official notice of this problem with certain model years camry's and corolla's. The spongy feel you have may just be the way your car is, it was in my case.
Now I didn't want to go through this same problem and hassle the following year (we inspect every 12 months in VA, no matter what). I went and bought the SS lines and never failed another inspection due to brake pedal issues.