Roommate is installing new brake pads on his Tacoma right now and we are working through trying to diagnose a pedal that's still squishy. We've replaced the master cylinder and plenty of bleeding have been done and we still cant figure it out. The one thing we noticed was the actual ceramic pad compressing against the rotor. I did a quick search and didn't come up with anything conclusive. So the stupid question is, are brake pads themselves supposed to compress?
And on a lighter note: