It kinda sounds like a confusion between the Cavalier Code (I use the one from 1st ed UA) and the Paladin's Code. I don't allow cavaliers to sneak attack, use missile weapons, etc, as 'dishonorable', but Paladins serve Lawful-Good above their personal honour, IMC. So in a way paladins are more pragmatic - they serve the Greater Good and yes, this means that the ends can justify the means. And when it's a choice between serving their personal honour (not lying) and serving the greater good (protecting innocents) no paladin's LG deity will punish them for doing the latter. I can't even see St Cuthbert doing this.