Honestly on my server I see very few paladins in T2 nowadays.Maybe there will be a lot of Glaives, at first, and then people will be bored of looking like everyone else and do something different. This remind me of the famous "All paladins will wear t2!!!!!" argument for why we shouldn't have transmog in the first place. I've seen like 4 paladins in t2, people don't want to look like everyone else. If Blizzard hadn't held out on allowing us to control our looks for so long they wouldn't have to rehash so much because people wouldn't have tossed it out to make space.
Loot in WoW was never unique, you can't lose something you never had. Being rewarded for being a better hoarder doesn't really seem like what Blizzard is shooting for.