After thinking about it for a while, I think that Blizzard intended for paladins to be in melee on raids. To heal and cleanse from melee range.
Proof: Lawbringer armor
Lawbringer is our Tier 1 set. The first armor we get from 40-man raid instances, armor specifically designed for us, and the armor that prepares us for what Blizzard thinks our should be our role in raid content.
So let's look at Lawbringer. It has +Int and +heal, which implies that we should be helping to heal. But it also has a bit of +Str which adds to our damage. As well, take a look at the set bonuses:
3 pieces: Increases the chance of triggering a Judgement of Light heal by 10%.
5 pieces: Improves your chance to get a critical strike with spells by 1%.
5 pieces: Improves your chance to get a critical strike by 1%.
8 pieces: Gives the Paladin a chance on every melee hit to heal your party for 189 to 211.
Three out of four bonuses only work if the paladin is meleeing!
Lawbringer is meant to help us fulfill our role in raiding. It has +Str and bonuses that reward the paladin for meleeing. It has +Int and +heal that reward the paladin for healing.
I believe that it is clear from Lawbringer armor that Blizzard intended us to melee in raids and heal from melee range.
This is their vision, and it is a good vision.
The problem is not with Blizzard, but with guilds who are too timid to let their paladins live up to the role that Blizzard intends for us.