I disagree (that you need spend all your wealth on defensive items to achieve a reasonable AC). I currently play a elf paladin/fighter in a PbEM game where the items are generally found, and rarely bought. This has lead to some less than optimal wealth and equipment distributions compared to building a high level character from scratch.
Now, at 14th level, the character has a base AC of 30 (+7 breastplate, +5 buckler, +1 ring, +1 amulet, +5 Dex, +1 Dodge feat) and a +26 attack bonus. But he can quickly ramp up his AC to 38 with Combat Expertise and Fighting Defensively (bought 5 cross-class ranks in Tumble). Obviously there is significant room for improvement on the equipment side, but future feat plans include Divine Shield (Complete Warrior) for an extra 4 points of shield bonus, Improved Combat Expertise (Complete Warrior) for the added flexibility of punching it through to AC 49 (or thereabouts) and still having a reasonably effective attack bonus of +11 for Whirlwind Attack duties.
When you start talking about +5 rings, +5 armor, +5 amulets, ioun stones etc, it starts to get pretty crazy pretty quick. About half my character's wealth is in defensive items, the rest is in weapons.