There is a glaring problem with the current setup of the prestige:
A. It has nearly no benefit for players below level 15 or so
B. It no longer works on the majority of what is considered high-level content (epics)
My suggestion is to make this prestige only a tiny bit less dedicated (no not much! it's really cool how focused the paladin build is on destroying those Outsiders) Just a touch, here's my suggested change.
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Paladin Knight of the Chalice I
Cost: 4 Action Points
Prereqs: Paladin Level 6, Paladin Courage of Good I, Paladin Energy of the Templar I, Paladin Extra Smite Evil II, and any one of: Paladin Divine Sacrifice I, Paladin Divine Might I, or Paladin Exalted Smite I.
Benefit: You are a devoted champion of the Good, driving those on the fringe from Eberron forever. Your maximum number of Smites is increased by one, your anti-fear aura is improved, and you have +1 to attack Non-Good Enemies and deal 1d6 additional damage with melee and unarmed attacks against them. You resist evil influences particularly well, gaining a +2 bonus to saves against spells and effects produced by Non-Good Enemies.
((The paladin deals 1d6 Damage, has +1 attack bonus and +2 saves against any non-good enemies))
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Paladin Knight of the Chalice II
Cost: 2 Action Points
Prereqs: Paladin Level 12, Paladin Knight of the Chalice I, Paladin Courage of Good II, Paladin Energy of the Templar II
Benefit: You are devoted to fighting Evil, driving it from Eberron forever. Your maximum number of Smites is increased by one, your anti-fear aura is improved, and you now have +1 to attack Evil Enemies and deal 1d6 damage with melee and unarmed attacks against them, stacking with your earlier bonuses. You resist evil influences particularly well, gaining a +1 bonus to saves against spells and effects produced by Evil Enemies . You also gain the ability to Censure Demons.
((The paladin deals a total of 2d6 Damage, has +2 attack bonus and +3 saves against any evil enemies))
Knight of the Chalice II: Censure Demons
Benefit: You may expend a turn undead attempt to stun and damage nearby demons or other Chaotic Evil outsider. A successful Will save DC: 10 + Paladin Level + Charisma Modifier negates this effect. The targets gain repeated saves to break free of this effect. Non-Chaotic Evil outsiders are unaffected by this ability. Deals 2d6 Light Damage each second the target is stunned.
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Paladin Knight of the Chalice III
Cost: 2 Action Points
Prereqs: Paladin Level 18, Paladin Knight of the Chalice II, any Paladin Faith II enhancement
Benefit: You are devoted to fighting demons and other Evil Outsiders, driving them from Eberron forever. Your maximum number of Smites is increased by one, your anti-fear aura is improved, and you now have +2 to attack Evil Outsiders and deal 2d6 additional damage with melee and unarmed attacks against them, stacking with your earlier bonuses. You resist evil influences particularly well, gaining a +2 bonus to saves against spells and effects produced by Evil Outsiders.
((The paladin deals a total of 4d6 Damage, has +4 attack bonus and +5 saves against any evil outsider enemies))
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The idea being that the three would stack. Thus Evil outsiders are hit with the dice from all three ranks (totaling 4d6 damage and +4 attack bonus and +5 Saves). Evil monsters are hit with rank 2 and 1 (for 2d6 damage +2 attack bonus and +3 Saves). And simply Neutral monsters are only hit with rank 1 (for 1d6 damage, +1 Attack Bonus and +2 Saves).
Ultimately the damage caused by Paladins against Evil Outsiders does not change at all, and the "feel" of the prestige remains true to the concept all the while making KOTC more viable for low level characters and Epic content in the same swoop.
I realize this may not be as big a damage or Attack Bonus increase as many paladins are desiring when it comes to epic content and lower-level play but... I feel it is important to maintain the concept and feel of what we already have and allowing it to become overly rounded simply would destroy that. I feel that the scaling increase of damage and the growing hatred for those that are truly evil is well displayed in my layout of ranks.
Thoughts?