The paladin horse at level 20 is a fun spell. Fun spells are not intended to be useful, and if you search the forums you will find lots of griping that it even HAS a 10% run speed boost. Yes, I know that scouts can literally run circles around the paladin horse while giggling maniacally. But don't hold your breath while waiting for improvements to a fun spell. It's not supposed to be useful, just fun. Wait until you get the useless squire and the equally useless Hand of Bayle, lol. With patience, you too can save enough money to get a real horse. Failing which, when you get into your mod-40s you can do a quest to get a free carpet with a 40% run speed boost.