If the valve isn't stuck too bad in the proportioning valve, after you bleed you can give a quick jab on the pedal and it will usually reset. If the valve isn't centered, it can sometimes be a pain to bleed 'em though. If you don't have the tool, your procedure for centering the proportioning valve is the best way to do it. If the pedal doesn't go down as far on the second pump, there's either air in the system, or the rear brakes need adjustment. The pedal height shouldn't increase with pedal pumps. Did you check the backing plates for lube, rust and/or wear? Lands should be flat with hash marks on them. All in all, good job, glad you got her fixed without too much trouble. Thanks for posting back.