The problem with paladins is that they were poorly designed to begin with and "patched" with Divine Power. The class would benefit from having one main stat (Charisma) and either Strength or Wisdom as a secondary stat, based upon whether you were a "damage" or "healing" paladin. I don't like them and someday I will re-design them.
Contagious Challenge : enemies adj to target of divine challenge is divine sanctioned. Good for challenging multiple enemies if they are clustered.QUOTE]
Note that it's just one enemy and not all enemies adjacent that is Divine Sanctioned.