As I understand it, the seal that the piston travels through can become hard over time and the piston slides on the rubber seal instead of distorting the seal a little. This distortion (which is a good thing) then "springs back" when you release the lever and helps move your piston back "from whence it came". I've tried it both ways a) use the old seals after a good cleanup and b) use new seals after cleanup and I think the new seals work better (but I hate spending the 30 bucks on the rebuild kit every time). My input here might not be germane, however, because an old seal may give you a firm lever (but a dragging brake pad).
[edit] egads, I've been robbed! I didn't know you could buy just the seal (see post below). All the extra crap in the kit (that you're getting charged for) is pretty unnecessary. Next time I'll be looking for "just the seal".