@Metronome: A small nitpick about the legend of the wandering nation. Paladins cannot quit their jobs. A paladin becomes one for life. The Inquisition makes sure of that, and that's one of their main functions - maintaining the status quo. In fact, some paladins fear the Inquisitors more than any evil mages. The second main function of the Inquisition is to hunt down Paladins who decided to quit. Though there may be those who evaded the Inquisitors, but there would be very, VERY few. 

As for his powers, they are fine as long as persons with strong willpower, or special training could resist it. In fact, powers like that will be very useful, pretty much from early on. 

Though the legend has been put under "Terminology", I would like you to edit yours based on points above, so I could paste it into the main post.

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And as requested, all characters are added in the original post. However, since you cannot nest hiders, they do look a little more ugly than you have intended. Sorry.