Lets see, a 3 mana 2/5 is fine stats, especially for a control deck. A 3 mana 2/5 lifesteal/taunt is pretty good, I would probably include it in a deck. I think it will be pretty solid with other buff cards, but buff paladin will still be a pretty weak deck overall.
This is a fun puzzle. I love the design and I think it could work somewhere down the line. Right now though, it feels like it's caught in limbo though. It's easy to activate in aggro paladin, but the payoff isn't worth much in aggro paladin. The payoff in a control or even midrange paladin is pretty significant, but it's a lot more difficult to make work.
This reminds me of Wickerflame Burnbristle. Kind of a different way of achieving the same thing and a 2-of! It is a soft taunt especially on turn 3. This is really good and you can't let this live if you are playing against it.