Paladins are Fighters with some Cleric spellcasting ability. They can't use magic Armour, but by the end of the game you'll be using Exotic Armour anyway, so this isn't a big deal. Elves don't make good Paladins because of their low Wis scores, but Dwarves do (as do Bobbits, if you want to focus more on spellcasting). A max of 37 MP gives both healing and Poison curing abilities to the Paladin, which is enough for an extra bit of help when needed. You wouldn't want a Paladin as your main healer, though.