While lacking in many other areas, this mechanic/bug (Whatever you want to call it), allowed us to compete with other tanks in AoE. This change (While was needed in my opinion) was handled terribly. I feel there wasn't any testing done on this hotfix, while their intentions were in the right place, it went way too far. A 50% reduction in healing from Seal of Insight when using HoR, or a target cap on it (3-4 mobs) would correct it, while still giving us a place in AoE content. As stated above, single target encounters (Most of this teir) haven't really changed with this hotfix.
The current state of Paladins in challenge modes are basically crap. While it is possible to "finish" a challenge mode, the ability to get gold with a paladin tank after this change is a "low, non-zero chance" (Thanks for the quote blizzard).
I can see another hotfix to paladins to make up for this change soon.
To allow the people of this thread to relate to me, I will now go on a QQ spree about how Paladin's suck and Death Knights are OP.
"QQ nerf DK, paladins suck, DK's are too good, DKs have lots of damage a heal and a bubble in one GCD QQQQQQQ" I think I nailed it.