I have to bury my foot to the floor to get the clutch to disengage, but the rest of the operation seems fine. Doesn't seem to have excessive play, friction point is still in the middle of the travel, but but the point where it starts grabbing is about an inch (or so) from the floor. I bled the slave cylinder, which is looks quite new, but no air came out and no improvement in the feel. Is there a way to adjust the mechanical linkage of the pedal or does anyone have an idea of what's going on?

 

Your hydraulics may be dying. How old are they really? Toyota (Aisin) or aftermarket?