When he slaughtered Stratholme, he was posthumously declared a traitor and should have been put on trial, not to mention being stripped of his paladin status, if they could have brought him back from Northrend in time (I can't remember exactly where I read that now, it was in the comics about six months ago), so nominally, at the end of Varok's campaign, he is still called a paladin, but he is "exiled" from the order. But the situation was, at the very least, debatable, if not to say that Uther completely messed up.
And the Scarlet Crusade is not considered paladins anyway; if in the classic game some of them were still our allies, now they are all declared "evil" and are to be mercilessly exterminated. And to rid us of any hesitation, everywhere except their Monastery, they have turned into undead.
Where do we end up when we save the world?