I'll have to mull over most of this post but what caught my eye was the mention of making cover and utsusemi conflict. It's pretty interesting to say the least. Cover really shouldn't work with shadows because you, as the paladin, literally have to be between the enemy and the player as an actual physical block against the attack. Shadows taking the hit doesn't make sense as the attack is aimed at a different person, it just hits the paladin. Anyway, it gave me a few ideas to toy around with.
The counterstance thing gives me a bit to think about as well.