OK, I took the caliper apart last nite and found a little corrosion under the first seal - the thinner of the two. I pulled the seals, washed the caliper in soapy water, and then heated it gently with a propane torch to dry it and turn the aluminum corrosion white. It then scrapped out easilywith a small wire pick.
After reassembly and bleeding the caliper is much better. There is still a little drag, but just slightly more than my 02 KTM.
My observation is that the corrosion had pushed the seal against the piston causing it to restrict the piston's movement.
Anyway, it is much better. Cost = nothing, just a few minutes of my time.
Thanks for all your comments.