nowt to do with cable stretch. everything to do with cable routing issues and outer cable compression under force. BB's with full metal jackets+compressionless housings are amazing
This and the link again that Greg gave near the start of the thread:-
http://www.twowheelblogs.com/avid-bb7-disc-brake-set-and-tuning
I have used the Goodridge compressionless outer both with flat bars and drop bars with crosstops and I've had no problems other than my lack of experience making the initial process longer. I have the linked instructions printed out and up on my tool wall in the garage, but I think I know them off by heart now. I would also guess that, even if you didn't want to replace the full cable run, just replacing the bit between crosstops and main lever could make a big difference. Due to the severe bends these bits of cables are forced through.
The only other thing I would add is to check the alignment of the disc brake tab itself. I do this by bolting on the IS adaptor on its own and spinning wheel/rotor to see if the gap remains constant, much easier to see this way than with caliper in place. This solved a performance issue I'd been having on a rear caliper, all I had to do was add in a spacer between adaptor and disc brake tab, for one bolt only. As you can buy official spacers for this very purpose I guess it's not that uncommon. The brake was still working before but I had to leave the adjustment slacker than I wanted, which was obviously accomodating the misalignment.
Oh yeah, and I had a go at revitalising some pads and rotors(from secondhand bike) via a dishwasher cycle, it worked very well.