It works better in a setting like Ebberon, that was designed with it in mind. The Realms are a place where fickle (sometimes literal) Olympian gods walk the earth and meddle in mortal affairs. Divine magic is a sign of their not-unconditional favor that they may bestow upon their magically-receptive followers. They giveth, taketh away etc.
Which is exactly why it makes sense that the more lawful-aligned gods would have paladins, given that they are less fickle and thus provide divine powers based on adherence to principles. The idea of a chaotic deity having paladins makes perfectly zero sense.
