More and more I feel like I need to start a Paladin advocacy group. Couple things.
- Punking punky, who's punktastic master was a party punking party pooper. Yeah, I wrote that. Yeah, it's early, lemme 'lone. No loss of powers here; if he was 'pretending' to cast evil spells... and I'm not pretending to understand that one, and if the promise was "I'll be good, honest!" and the Paladin says "Good! Welcome to the side of righteousness and piety!" Genius then 'pretends' to kill the Paladins friends, and he's righteously smited.
No power loss, that's open and shut.
- IIRC, there was, at some point, might've been 3.0, might've been 2E, that said in short, "even if he commits an evil act via trickery, he still loses his powers and must atone." Which made getting a Paladin out of your campaign pretty simple. Now I'm with Endur on this, I feel that a Paladin can go toe to toe with another Paladin, no question. Both of them can be lawful (separate warring socieites, or simply believing in different structures) and both can be acting for their own societies' (i.e., in their mind, the greater) good. So I'm much more in line with flex when it comes to Pallies and how their view, combined with their God's view, determines their general outlook.
That being said, if an Illusionist sets up an innocent to be slain, and the Paladin doesn't know to make a check (the evidence in front of him was enough) then by all means, he's within his rights. If he never attempts a Smite, he wouldn't know the target wasn't evil. Would he be upset? Yes. Enough to go murder an Illusionist? Quite (who was evil, and was getting innocents killed with the Paladin's sword). Would I strip him of his powers?
Only if he wasn't remorseful. If he went to the trouble of telling the family, apologizing, and giving last rights to the fallen, than I have no trouble with it. In combat innocent people get hurt; especially when magic is involved. I can't reasonably hold a Paladin accountable for everything that happens on the battlefield. I can hold him accountable for how he responds to it, and acts in response to discovering the truth afterwards.