
Dasrak |

This actually does need clarification, as right now it is not clear if you need 2 actions or 3 actions to use lay on hands when using a two-handed weapon. The drop action is ambiguous if you can drop the item with one hand while continuing to hold it with the other. If you can use the drop action as a free action then it costs 2 actions, otherwise you need to use the change grip action which pushes the whole procedure up to 3 actions.
Otherwise you are correct; Lay on Hands takes a somatic action to activate, which requires a free hand. Adjusting your grip is no longer a free action, so it's a complete pain if you're using a shield or a two-handed weapon. Probably needs to be emphasized more clearly in the rules, since this is a huge change from PF1 that can easily be missed if you aren't looking for it.

Tholomyes |

Huh, when I first saw the paladin preview on ENWorld, I assumed that the manipulate trait was what made it require a free hand, so warded touch would remove that, and without this thread I probably never would have corrected myself.
Honestly, I think my preferred fix would be to give them a feature (or feat, maybe) that allows them to cast somatic actions with a shield, and maybe a late level feat, with that as a prereq (and probably sheild ally as well) that allows them to use one action as both a somatic casting action for a champion powers and a raise a shield action.

Malthraz |

Rules as written Lay on Hands requires a free hand, even with Warden Touch. There are some rumours going around that this has been an errata clarifying that Warded Touch removes the free-hand requirement. Not that I can find it.
I think this change is needed. Multiclassing into Cleric to get Emblazon Symbol is slightly mad.

GreatGraySkwid |

I thought the 1.0 updates made it to where you no longer needed a free hand if you took Warded Touch.
You are correct:
Page 108—In the paladin’s Warded Touch feat, just before the final period, add, “, and you can cast it and deliver your touch with a hand holding a weapon or shield.”