I've beaten the game using a cavalier and an inquisitor (in two different games).Now,to compare the kits you have to do it accordind to their innate abilities and not those aquired by items (that's my point of view),because with the right items you can make almost any character effective.
Although cavalier seems better,in this game i think inquisitor works better,especially when confronting mages.His main advantage is his true sight ability,because you can dispell protection illusions almost instantly (your mages need some to time to cast this spell or oracle) and most contigencies of the enemy spellcasters have some form of illusion.Of course your mages can use contigencies as well,but this ability of the inquisitor saves some spell slots.Also its dispel magic ability works for double his level.
Now i am currently playing an undead hunter (as you can see,i play a paladin in my first try in AD&D games,a habit i have for more than 15 years).This character has high potential.Its immunity to level drain saves this protection equipment and allows it to be used by your other front line characters.
Overall i think paladins are well implemented in this game,and not only for the Holy Avenger.They are good melee characters,with cleric spells and excellent immunities.Of course i am not implying that they are the best characters-an opinion like that for any character is on contrary with what roleplaying is about.
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