So thinking more on the issues with just Paladin, this is what I'd propose:

1. More HP. Paladin doesn't need more HP than Warrior, that's part of a Warrior's strength. However, Paladin should be brought within 2-300 HP of Warrior, 1k is ridiculous.

2. Block damage mitigation. Blocks should matter, for both physical and magical attacks. I'd be happy if a full block was brought in line with a partial parry for frontal attacks.

3. Block rate increase. Not a drastic increase, what with the new Divine Veil but one that would be noticeable at least. This would give the shield an actual defensive purpose and would make the statement "Paladin = less dmg taken" true for once.

That info on the Gallant Surcoat is interesting, I'd use cover more in light of that. However this info should have been made more readily available, especially if you're trying to get people to go back to using it.