well, I said yes even though I have been one of the vocal supporters of preserving clerics as is (are?). I like what it looks like here, however I would suggest these minor changes to further diverge the classes.
1. Lean the Paladins more toward passive automatic powers (a la monk aura or even fighter extra attack), and make them less of a spellcaster—even if the spells are mainly self-buffing, just have them be automatic. This leads into the next one.
2. Give Paladins less max mana per int and give priests more. after level 10, bump priests up to mage levels of mana gain, and take paladins back to fighter (or so). This allows Mages to still have more mana, but brings the focus on the priest as one who asks favors of the gods and the paladin as one who is given favors by the gods.
3. Paladins can sacrifice some of their max mana in a boot for a permanent weapon bless type effect. Sort of like enchant, but more with specials (like blood or wings) than wc, necessarily. I like the idea, if you can tell, of making the paladin more of a warrior, and not having to cast spells every few minutes, thus removing my main gripe with Moira cleric.
4. if Priests are going to get spiritual hammer, a maxxed out priest with a spiritual hammer should be the absolute most effective combatant against evil enemies possible. Followed closely by the Holy Avenger in the hands of a Paladin. Consider making the spiritual hammer also have some passive positive effects, like healing and wisdom boosts or something.
BTW, I love the idea of how desperate everyone would be for a Priest with resurrect when they die.
*cackle*