1st minor question: -2 on thievery with a feat that requires training in it and a +1 to dex? Clearly this factors in both the armor and holding a shield. Ok, so why would a paladin character ever pick pick-pocket as a skill feat, if they were going to be a sword and board paladin? I get that they want to really beef up the flavor of Seelah being a street urchin, but couldn't they at least then have made her a two-handed weapon paladin so the penalty to her skill feat doesn't make it essentially useless (assuming the paladin could ever find a use for it without falling.) The two-handed version of Seelah would make the Rebutitive strike a more significant reaction and wouldn't lay on hands require a free hand for at least the touch action, if not the somatic part of the casting?
That skill feat is nowhere near useless. I agree that it's pretty sad you can't use it in combat well due to holding a shield and a sword, but it's a fantastic non-combat ability to have on an unexpected type of character.