Do you like healing on your paladin for raids and pvp? I don't really see why you would consider rerolling just for dps while doing dailies if you enjoy playing your paladin overall.
Ret is fine for doing dailies. I have no issues with it whatsoever. Yes it will get better with gear. My ret pve gear is ilvl 495 (with upgraded normal sha axe) and it does fine. Mobs die fast. Even using my ret pvp set consisting of mostly honor malevolent with tyrannical chest piece (all gemmed favoring resil) I go through the mobs pretty fast.