You don't have to chop it all off by any means. That was just my personal opinion 'cause I'm lazy, which is why I don't buy almost dead plants either. But if you do decide to cut, leave about 4 or so inches of stem from the soil surface. It'll backbud making each stem branch 2-4 branches. It wouldn't take that long to grow back (and it would) and it would be fuller and brighter. And those leaves that you cut really short, if they are adult leaves, chances are good that they'll be short for ever more. Now, if the plant seems pretty happy right now, you can just leave it as is, and keep a close eye on it. For all I know it could bounce right back. Some plants can have a crazy will to live. Whichever you choose, I wish you the best of luck with this plant. Perhaps your thumb is greener than anyone knows.

You have multiple issues going on here; the leaves should not be falling off like that. As LilBit said, it appears to be a glass container and if there are no drainage holes that is your first problem. The second issue is your soil looks very peaty, like a regular bagged potting mix. Succulents need very well-draining soil. A simple fix to get you started is to buy a bagged succulent/cactus mix and add 50-70% perlite, depending on how humid your climate is. For the long term, you may want to consider using a gritty mix (you can search on this forum for recipes). When you water the plants, the water should flow out immediately through the drainage holes. The next issue is your plants are etiolated, or stretching for sunlight. Succulents are generally not indoor plants, but can sometimes be grown in south-facing windowsills (assuming you don't have any trees or anything blocking the light) or under T5 fluorescent lighting. Because these plants have been without sun for so long, they will need to be acclimated over the course of a couple of weeks to more light. Finally, one of your echeverias (the fuzzy one close up in your second photo) is a bit perplexing. Normally rot coloration starts toward the stem end of the leaf, rather than from the outward edges like on your plant. It's possible you have a fungus going from the excess moisture. The first thing to do is remove all of your plants from that mix right away. Take a look at the roots; if there are very few and/or the plant stems appear brown at the base, they are rotting. If that is the case, which I suspect, you will need to cut the plants with a sterile knife above any discoloration until you see only green, healthy flesh. The plants will sprout new roots in time and can be re-planted into a more suitable potting mix. All of your plants, even if not currently rotting, should be taken out and allowed to dry out a bit. Don't re-pot them until you are able to get your hands on a pot with a drainage hole and a well-draining mix. Succulents can live outside of soil for months, so don't worry about leaving them out too long - they will be happier that way than in the moist environment. Also, these are succulents, not cacti :) I hope this helps, and good luck! I'd love to see an update later if you decide to go through all the steps and keep the plants!

Roots can stand a lot of jostling. Get a trowel in the pot and loosen the root ball around the edges. If it's not too root bound, you should be able to tease it out. Not critical yet. Hack that towering stem off when you can. It's not critical to do it right now, but it will make re-potting a lot easier. I would treat the spider mites first. You can pull off the webs with a paper towel then apply insecticidal soap. Read the directions and soak the little buggers. Your watering scheme is working - the plant has gotten this far - so keep at it for now. Try to get it more light. Closer to window and lower so all the leaves get some light. Peppers are tough. It will pull through. Dennis

Looks like the soil is too dry....maybe too much sunlight. Where is the plant located? Direct sun is hard on them also. I've had great success with mine on the front porch, that only receives filtered morning sun. How often do you water them? How much sunlight do they receive? When you repotted them what type of soil did you plant them in? They like a sandy-type loam. Did you move the location of the pot? Tammy in Indiana