Bad release bearing?  :(

Edit:  As far as grabbing hard, I think that is fairly normal.  I was never able to get to engage gradually at least not easily.  I don't think you have enough control with the lever arm as it is.

I took mine to the local "former" AGCO dealer (Brownstown, Indiana).  He'll attempt just about anything.  I was going to do it, but I wasn't immediately having luck finding a puller long enough and my trip was coming to an end.  I actually found just the right tool on my next trip.  I gave him the liners, rivets, and a rivet tool to use.  He didn't actually have the rivet tool any more.  I took only the axle.  I reconditioned the bearing myself.  It was locked solid from many decades of disuse.  I removed all the gunk and re-packed it with grease.  I took it to him to check over and he said it was almost like new, so I put it back in.  It's working good so far (6 months).

 I have done dozens of the CA axle clutches over the years. Contrary to popular belief, I can make them hold more torque than the factory engine clutch can transmit. 

 However the parts for them keep getting more and more expensive. The only way I would accept one to rebuild would be time & materials, with a healthy deposit up front.