pallies are really good in 5 mans. they're durable, they have freedom and dispel, their mana efficiency is pretty damn good and their CC also doubles as damage mitigation (HoJ)
in raids, they can divine sacc the raid and basically stop everyone from taking damage, like a baby disc priest casting a super powered PW:barrier, a ghetto power word barrier, by design.
either way, i love a holy paladins presence, because if tanks start dying then the pallies are the first thing you look at. then you, of course, look at the tanks, then the other healers. they make good scapegoats!
takes a minute to learn and a lifetime to master ;-)
like with all the other classes and specs.