aaron,
Here are some additional thoughts to add to the ones above. Keep in mind that we cannot feel what your feeling, and can only offer some suggestions.
Your 95 is now about 8 years old. I would be willing to bet that it has the original brake fluid in it.
Brake fluid is "hygroscopic", which means it absorbs moisture. Some will insist that the term is hydroscopic. I will leave it an expert in organic chemistry to point out which is correct!
Anyway, it only takes a minute amount (about 4%) of moisture to render your brake fluid useless. You should consider flushing your brake system with a high quality dot 4 rated brake fluid. Castrol GT LMA (Low Moisture Activity) is a high heat top quality brake fluid.
ATE also makes a high heat LMA fluid and is the recommended fluid for BMW. There are other top quality fluids available, including one available from Ford.
Check out the SHO Times web site for a great discussion on brake fluids. Also check into the brake bleeding proceedure if you are going to do it yourself.
Next, a failing master cylinder can also give you a "spongy", or "mushy" feel in the brake peddel. another sign is when the peddel fades or falls to the floor.
After you bleed the brakes and flush the system with fresh fluid, if the soft peddel is still present, look into the tests for a poor master cylinder.
Keep in mind, that with a power brake booster you never really get as hard a feeling as you do without power brakes.
Lastly, keep in mind that the two things that take the most abuse on a car are the tires and brakes. Neither should ever be bargain basement products, that is NO BLUE LITE SPECIALS!.
Poor quality brake pads can make it feel as if you are not getting good stopping power, because you aren't! Hope this helps, rangerj
PS isn't there an old Spanish Mission in San Louis Abispo, about 300 years old if I remember right?