Just a quick update on the front brakes of SV650. Changed out brake fluid, that didn't do anything. Travel was still excessive and with hard braking was pinching my fingers on the throttle.
Dug into the interwebs and found out that its a pretty common occurrence on the bikes, and not only on SV650.
Seems the cause of that is either a bad seal inside master cylinder, or in my case just a grimy piston that is sticking in the caliper.
Removed front calipers from the forks and squeezed brake lever to see what was going on. One piston in each caliper was sticking and not moving out fully.
Drained the system, removed pistons, cleaned everything out, lubed pistons and seals with brake grease, refilled and re-bled the system.
Now front brake is nice and firm, and engages at proper distance from the handle bar.