To open up a bit on our setting, being set on Earth, Amethyst deals with human faiths like Christianity and Islam, so it was important to us to have god as unproven as he is...today. Knowing that, you can see why we wanted to distance any hard-line faith from Paladin. Most would be religious to be sure, but we didn't want a hard set of rules demanding that.
And yet it is those two faiths from which we get most of the paladin style legends, especially Christianity. King Arthur, Sir Lancelot, Jean D'Arc, Charlemagne, Roland- all "paladins" of some stripe, all had their ups & downs. Some would also consider David of the Old Testament to be one of the first "paladins" in history, slaying a seemingly unstoppable foe with guidance from God.
If you take away the strictures- whatever they may be- then you also strip the class of its "potential voltage" in terms of roleplay. Your players won't have a rigid ethical structure within which to base "Paladinly" decision making.
Or look at it this way- faith is what "drives" a Paladin, and faith has rules. Even in postmodern literature, "driven" characters have frameworks beyond which they do not lightly stray. When they do, or when something disrupts their framework from without, they become shaken and unsure to the point of loss of power or even the will to live. At that point, they either rebuild their faith framework or find a new path.
A classic example of this would be found in Terry Brooks' John Ross, the main character in his Running with the Demon series of books, or even in comic book characters like Superman, Captain Mar-Vell, or Captain America.
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