I kinda like it how it is. On a high-level Paladin, with Heal having its usual 10hp/level nerf, Lay On Hands is the most powerful heal in the game. Even at mid level it's powerful.
It's the 'Oh, f***' button.
'Oh, f***, teammate is down...' zap them back to full health with your Lay On Hands!
'Oh, f***, big bad evil undead...' zap them to death with your Lay On Hands!
Fun part coming when one of your teammates gets killed BY a big bad evil undead. And you can't do both.