There is no fantasy lore anywhere to suggest that paladins have magic powers.
I disagree. I think True Neutral definitely has a place in the alignment system. The figure who acts to maintain balance between other powers is a good example of this.
What do you mean one man holds off an entire scenarios don't end well.
Jet Li in Hero begs to differ... oh right ... that didn't end well.
Step along, nothing to see here.
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None of the last 2 descriptions of Chaotic Neutral are what I fully see all of Chaotic Neutral as, and are generally coloured by a bias against the alignment. It's many things, and a variety of personality types in much the same way other alignments also cover a variety of personalities. Chaotic Neutral also isn't completely a single political political ideology, as there clearly can be chaotic neutral or any sort of alignment on both sides of the political spectrum.
Only problem is, Hassassin is wrong. CN is a conscious choice for one. For another, CN also embodies irresponsibility and being fickle. Neither of those things are present in the example. CN is not simply, "I can do whatever I want, whenever I want, but, what I want to do is be a team player and be totally responsible all the time". CN is a jerk. He's the guy who falls asleep or wanders off during a watch. He cannot be trusted. Ever. That's what irresponsible means. Sure, he's not malicious. He doesn't want to dominate you like a CE would. But, OTOH, he's the guy who you would never, ever consider asking to watch your house for the weekend because you KNOW he'd have half a hundred of his "best friends" over to party and stick you with the mess and the $2000 noise compaint.
One of the most iconic D&D characters, perhaps THE iconic D&D wizard, Mordenkainen, was True Neutral--as seeker of balance, of cosmic order. Definitely not "unaligned".
I consider one of the original D&D characters as least as iconic (if not more so) than a character from a 1950's or 1960's fantasy novel I never read.
Why would such a figure be a particularly good moral archetype for a fantasy roleplaying game?
Do such entities exist in the related fantasy fiction? Is it fun to play? Does it open up a set of gaming options that might not otherwise exist?
If you ask me, the "maintain the balance" alignment isn't an alignment at all. It's either a character quirk or some kind of neurosis, but there's no need to hardcode either into an alignment system.

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.