Why should the Paladin remains a LG only class? Certainly the Lord of Chaos or the Lords of Evil have thier own Holy Warriors do they not?
Yes, they do have their own Holy Warriors. They're called CLERICS.
IMO, I'd much prefer to see the Cleric renamed as the Holy Warrior, and a new class introduced which is a more powerful Divine spellcaster, but is limited in armaments and armor, like a wizard.
Besides, how could the Lord of Chaos possibly have a Paladin? You've missed one of the most vital aspects of the Paladin, the Paladin's Code. You can't have a PC which is Chaotic who has to abide by a Code. Even a Neutral character wouldn't fit in with a character class which has to abide by a Code. Only a Lawful character would be suitable for such a class.
As for alignments, Lawful Neutral isn't appropriate, either. Why's he dedicated to the Code? Just for the sake of being dedicated to the Code? And Lawful Evil, what's his Code? To wreak death and destruction? Yeah, some Code. That's REAL limiting! A Paladin can only really be Lawful Good and still be a Paladin.
And no, he's not a Holy Warrior. He's a warrior who wields divine power, but it's not to serve as a champion for his deity. You don't even HAVE to have a deity to be a Paladin. Nor does it say in the PHB that the gods create Paladins. Rather, it says that being a Paladin is something inborn. Something WITHIN you. The power doesn't come from an external source. That's in contrast to, say, the Blackguard, who has to make peaceful contact with an evil outsider to contract the taint of true evil and become a Blackguard. That's why the Paladin is a Core Class and all the various alignment Paladin wannabees are Prestige Classes. One is BORN a Paladin. Everything else, Holy Liberator, Blackguard, Divine Champion, etc, one has to be made into.