I do not know for how many days you already deleted the Paladin, and what time period is “reasonable” to have the char restored. I think there are enough bugs and problems where people are often left waiting so that such special services really have to wait or simply are not performed at all. I took parts in WoW raids where loot was assigned to the wrong person, GMs were called to correct this.
Now you can guess what my stance would have been. This was a player mistake, no reason for GMs to interfere at all. In this particular case I also know that the guy who got the item by accident was playing the system, as he told the GM the name of a buddy who did not even participate in the raid.

I would like some more ingame presence of GMs, less item restoration and bureaucracy when it comes to banning people for instance. Banning has become almost like the police having to gather evidence to put someone to trial in MMOs. A legal act. Maybe this is the reason why silencing gold spammers, bannning bots and all that takes so much time.
I would like to see GMs materialize as some kind of god and remind people to be nice to each other. I guess this is necessary, too many MMOs let zone chat become something like the infamous barrens chat.

Support was really kind to you. I would have at least expected a bribe or an invitation to dinner if you wanteda support person to restore your char. But maybe you did that, who knows.