I dont think the alignment system sucks, but i do think they could have adjusted some things. Why use the circle shape where good makes you move towards neutral? Just make it a flat square. Also, certain alignments shouldn't lock you out of abilities IF the origin of those abilities don't line up with the alignment required. My example again is a paladin of a NG Goddess, why do they need to stay LG?
I love the idea of betraying an ideal, and having to sacrificing something because of it, but just a universal "if you're not Lawful Good, you're not a paladin anymore", shows little imagination.