Sounds to me like you've got the usual leaky slave cylinder and it's finally leaked to the point that the master cylinder has sucked in a big slug of air making the pedal soft and useless.
![](./images/smilies/spacer.gif)
Crunching the gears will have been a symptom of the problem rather than the cause.
![](./images/smilies/spacer.gif)
First thing to do is check the clutch fluid level
![](./images/smilies/spacer.gif)
(the reservoir will probably be empty) then check around the slave cylinder for signs of leakage
![](./images/smilies/spacer.gif)
(it might not be very wet but it'll be dark and dirty where crap has stuck to the slowly leaking fluid.
![](./images/smilies/spacer.gif)
If those two things are as described then you should be able to get away with bleeding and refilling the clutch hydraulics and just keep an eye on the fluid level.
![](./images/smilies/spacer.gif)
If it turns out to be a slow leak you'll have no real trouble as long as you top it up every now and again, eventually it might get bad enough that changing the slave cylinder is worthwhile.
![](./images/smilies/spacer.gif)