The fact that it loses more is not critical for the Orc; the main thing is to gain Rage quickly, not to lose it quickly. They can be knocked out of Rage, but with the Rage enchantment, even Paladins will gain a lot of Rage points plus 75 Battle Frenzy and Blood Memory, and a bunch of skulls from 150 to 200, meaning that without any super abilities, after an attack, a Paladin will have the second or even third level of Rage, and with an upgraded defense, how much will the unit that retaliated take? Even if it's a level 7 creature, I'm willing to bet it won't be more than 5% of the squad, while the Paladins will take down up to 50% (depending on the creature's defense).
Let's calculate: the highest attack is with the Orcs, plus Retribution (25% additional damage). How will the Paladin hit?
And this is just one Paladin... And I haven't even taken into account the bonuses from Rage levels.