I agree it's a bad mechanic. And I also agree it's silly from a narrative/roleplay perspective. But it's just one more thing for the pile in that regard. I think it's similar to insta-porting back to camp and saying "Hey know what, I was actually a completely different race/class all along! Oh and Astarion was a paladin and Shadowheart a barbarian, who knew!" Though I can see why these things exist because choice is king, even if the choices are ludicrous apparently.
True, but I think its a little bit different for paladins, since their oath is a constant part of the roleplay, and their moment of breaking it could have a meaningful impact on the tone of the narrative, and the weight of the consequences could give you the lore supported reason to not step on that path, when, on the other hand, the race/class swap is mostly out of character action, and its almost impossible to actually justify it in a story-friendly way, without breaking the immersion