The pad material should not change the way the levers are pulled back, only the way the bike stops. It still sounds like there may be air in the system. Like was mentioned, don't loosen the banjos, that only introduces air into the system. What method are you using to bleed the system?
I dont think I said this correctly, so I'll try again. The organic pads are soft compared to a good, metallic pad. Softness may not be the correct word since both are hard, but compared to each other. . That softness translates to a very spongy feeling brake lever at the point where the pads contacts the rotor. You'll get power, but the feel is vague. VERY much like having air in the lines. You do adjust to the feeling, but it never feels quite right.
Here is an example of a soft, spongy feeling pad. These are the worst brake pads I ever used. No feel, soft, and dusty as can be.
http://www.motorcycle-superstore.com/3/14/137/10070/ITEM/EBC-Organic-Front-Brake-Pads.aspx They did polish up the rotor nicely, though.
When switched to this pad:
http://www.motorcycle-superstore.com/3/14/137/11048/ITEM/EBC-Double-H-Sintered-Brake-Pads.aspxThe same brake system was firm, strong, and had a great feel. The rotor ended up not looking as pretty, but the feel was night and day better.
The brake system was not bled between pad changes since all of the components were new and carefully bled when assembled.
A worn master is usually easy to diagnose and fix. The rebuild kits are not that expensive. To test, pull the lever in and hold it..applying the brakes. On a good system, the lever will pretty much stop. A worn master cylinder will let the lever continue to creep towards the grip.