Had to respond "other."
Formally speaking, people with the overall fundamental concepts behind Wizard, Paladin, etc. exist in the world. So there are a lot of "bards" for example, or a lot of "druids" and "shamans."
But there is only one Bard, and he is in our party. There is only one Druid, and he is semi-retired training to be a priest. There is only one Fighter, even though there are many mercenaries. There is only one Battlemaster, even though there are many generals and strategists. Etc.
More or less, at any given time, there's really only one person who is taking the heights of a particular art and pushing them much higher. The people in our party have gone from being nobodies to being legendary in short order, and the world itself recognizes their might. This is my compromise, to allow for there to be wizard colleges and orders of priests with actual magic, etc., while still having the player characters stand out for their accomplishments.
In a generation, these folks will be teachers or exemplars that others follow. In a century, they will be well-loved heroes whose tale has grown in the telling. In a thousand years, they will be myths who walked the earth in the distant past.