Flex in the system robs you of useful cable travel and feel, but does not reduce power (provided the lever is not bottoming out). Imagine hanging a 1kg weight from a hook by a steel cable vs a rubber band - the rubber would stretch a lot more, but both would pull on the hook with the same 1kg force.Having used several different models of Tektro brakes in the past, I would say the most likely problem is the brake pads (assuming you're using stock ones). Tektro pads that I've seen varied from bad to terrible, and replacing them with everyone's favorite brand (the one with the word "stop" in the name) always improved braking performance tremendously.
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