Dalamar said:
So the fact that it says "x times per encounter" instead of "x times before you can rest for 1 minute" is what you are against?
Actually, I think I like this idea far more than x/encounter.

It makes sense in several respects that if you have a more or less at will ability that cannot be used every round that the reason it cannot be used every round is that one needs to rest a bit between uses.
So the Paladin takes a deep breath, draws upon the vast strength of his faith and will and Smites the foe. Having done so, he takes a moment to refocus his will at his next opportunity. Perhaps it takes only a moment - only a single round spent not moving or attacking or some other strenuous action. Perhaps it takes a few moments of prayerful contemplation, a full minute that cannot be readily attained in the midst of combat. Either way, it makes a nice thematic limitation upon how often he can use his ability. Requiring only a single round means he can fall back for a moment or two before rushing in again. Requiring a minute of prayer to reinvigorate the intensity of his faith, will, morale, etc means it will likely be a once per combat action unless things are going well enough that he can fall back for a full minute - in which case it probably isn't needed in most instances.
I also like the fact that it almost seems to flow well with fictional examples, such as where the character takes a moment (or three) to hype themselves into whatever level of morale, rage, etc they need to perform the action. Or perhaps it is a thief, taking a few moments to steady their hands before attempting a complex lock picking or deft purse cutting. All in all, I really like this idea - over and above the "x per encounter" idea.
On the other hand, has anyone else noticed the similarities between this and a psion (or psychic warrior, etc) refocusing after expending focus for a psionic feat, class ability, etc?