The Paladin gets a skill that adds directly to the Atk/Def values of the units. He also gets the skill to directly reduce the atk/def of the enemy demons and undead (Holy anger).
In addition to that I must say I have sorely underestimated the Resurrection skill that the paladin gets. At lvl 3 it ressurrects 100% of any one fallen troop (they still count as losses though), usually the most important one (if you lose 3 archdemons, 1 Black Dragon and 150 archmages, it will ress the archmages).
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