+1 that toeing in the pads will actually make things more spongy. For the most firmness, they should be flush with the rim.
BCRider, I agree that the better cables and housings really are better, but the really good stuff isn't necessary to achieve reasonable braking. Clearly, the OP is having a more serious problem. I was going to suggest that the housing wasn't pushed into the brake levers enough (common problem) but the OP said that was not the case.