Having Higher Magic, but no Chaos or Destruction is definately what I'd like to go for. Starting with Higher Magic might be a little unbalanced, but the Paladin would still have only so much mana to work with, and would have to buy spells and burn crystals to learn them just like any other class, and wouldn't have the magic runes to upgrade it for a while as they'd need to learn the basic spell schools first. Also, the removal of Alchemy in the magic tree would put the brakes on crystal supply a little too. If that's the only way to make it happen, I think it'd still be worth a try.
Mind you I'm posting this suggestion here in hopes that someone who knows how to mod will take my suggestion and run with it. I am not that guy, at least not yet. I'm too busy playing the game still to start taking it apart!
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