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I have a multi paladin/cleric (illmater); he does VERY well as the leader. Plus there is a holy sword (only usable by paladins) in the game. Their 'cure disease' ability is nice, and so is laying hands and the extra spells. Not accepting rewards is no big thing for me, but of course there are differing opinions. Also, paladins have great saving throws.
If you have a paladin as your leader, s/he will need some intelligence to be able to dialogue properly. An important note: you can't really buff any one ability without sacrificing another, and paladins use virtually every ability score in the game. A very good class; while lacking the punch of a pure cleric or fighter class, they make the best of both. A very good class, IMO.
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