Can there be a mechanism put in place that allows for a Paladin/goodly character (But especially a Paladin) not to be comprimised?

Specifically, having to stand buy and watch as goodly mobs are killed in front of him by evil PC's?

I can't justify being a Paladin and standing passively by as a child is summoned in front of me and slaughtered.

The Tribunal help files say that Mobs are protected by the city guard. Could we at least make city guards aggresive toward people who harm their citizens? Then at least we could lay responsibility on them!

Just roll your eyes, make a threat about what you will do to them when you catch them out of town and walk away.

Treat mobs like homeless refugees belonging to an unpopular religion, pity them but realize they aren't subject to the same set of laws or protections as the privileged people like adventurers. The upper class is free to kill them for sport or abuse them when in need of amusement.

nt