I think it would be a neat flavor thing, and I don't think particularly game breaking, to allow dwarf avengers (only dwarves!) the ability to use two-handed axes.

The strike of faith bit could be the same as a sword.

Screw templars defense, maybe that's the trade off and you don't get any templars defense.

I'm the Grinch on this one. So here are my thoughts.

If it's specific to dwarves, I'm not really sold on the idea that "axes" are more dwarfy than maces or the like. Why axes specifically for dwarves in this situation?

Secondly, with the paladin class and it's code - there is a certain "appearance matters" element, and to me axes are more 'brutal' and barbarian'esque weapons compared to mace, polearm, sword, and staff.

Third, if this IS about making dwarf paladins suck less - I'd rather find a more dwarfy way that is cooler than simply "You can use an axe". If we just gave them axes, I'm not sure why the other races wouldn't get them too, particularly giants.

With those three things, it's enough to nudge me from the "neat idea, I don't exactly object" to "Eh, not enough to justify it for me".

And so I'm a coal, but a gentle coal.