The Paladin is designed to fight against a specific enemy – the dark mage. He is immune to Berserk and can dispel spells. However, what use are these abilities against, say, a chaos mage or a light mage? Absolutely none. But increased damage will be very useful (it is increased by +5 to the maximum, the minimum remains the same as the Paladin's, so it is beneficial to use Divine Might), and the ability to strike two squares away may come in handy. Even if it doesn't, it will still be more useful than Knight Isabelle.