It is a bit silly that choosing too many good decisions makes you lose your paladin powers. Especially because a lot of the lawful option don't really fit a paladin. They better fit a hellknight in my opinion.

I can agree that there looks to be a bit too much of this (Lawful Stupid memes ahoy!). Thankfully - Scrolls of Attonement exist.

Kingmaker had a similar issue where lawful tended more toward fascist.

I think there's a bit of an issue where making a choice that is just on one axis (say Good / Evil) will move you towards neutral in the other axis (Lawful / Chaotic).

So if you pick and option that says LAWFUL you become much more lawful (though you are often capped) and a little less good.

If I'm not wrong that's how it worked in Kingmaker, could be the same here. I don't know for sure.

Since not a lot of "Neutral" options come up it'd be hard to remain neutral otherwise.

I'm playing a true neutral ex-assassin at the moment and while there are few (if any?) neutral tagged replies, there are usually always replies without a tag at all that seem to give you no points, which is effectively neutral. 20 hours in and my alignment is still dead center, despite picking a handful of lawful/chaotics.

Far too many of the Lawful choice feel like Lawful Evil, great if you're a politician, poor if you're playing a lawfully good character... eventually I just took the best Lawful replies I could or non-alignment response till I was no longer in danger of going "Neutral" Good.

If you follow the good/bad logic to a end, every good decision becomes bad. (And the opposite).
Help a village to prosper? They grow to a point that the surrounding cannot sustain them anymore. Which then may lead to further implications, because they might suffer in a bigger scale as if you would not have helped them in the first way. Or they rage war/pillage tours against their neighbors.

In other words: don´t give too much on this whole alignment system. Its just a game.

Thankfully there is the scroll of atonement to reset the alignment before it goes too far away from lawful good.