Like I said before bro, I think pallys are in a pretty good spot right now.
The use of vorpals as favored weapons vs trash mobs has pretty much negated the DPS disadvantage. Higher AC and saves, + self healing and neg status removal counts for a lot more now. Spammed ES,DS,ES with a +5 holy burst weapon of choice, better saves, self healing, and neg status removal pretty much owns beholders and does awesome burst damage on bosses.
It'll be interesting to see weather the current trend of content continues, and seeing as how next mod is on the Devil's home plane, I'm not seeing it not doing so, I think things may be pretty good for pallys from here on out.
I love pallys. I'm about to create a new one once I get back from vacation. TWF of course, screw AC, I like the pain.
EDIT: I actually think I'll be running around with a 54 AC that could go as high as 65 with buffs while dual wielding so take that suckas!