As far as I know, shield follows the same threat mechanics as healing, it's just that it's frontloaded because it's instant. Healing threat is half of all healing done, when it's done, split between every available mob.
For example, you could shield for 2500, flash heal for 2500, or renew for 2500, and there's five mobs up. Shielding gives 250 threat to every mob, immediately (because it's instant), flash heal gives 250 threat per mob but only when the heal lands, while renew gives 250 threat per mob but it's split up between ticks.
*If* he's got a shield, I'd probably just let him take it and throw Renew. If he doesn't, I'd shield him to keep the cast from interrupting, OR I'd steal aggro off him and give him and extra second or two to get Poly off. Keep in mind Fade is now a *good* threat reduction for the duration instead of a sh*tty one - having 90 million less threat for 10 seconds means there's no way it'll stay on you.
EDIT: Hmm, it's have the threat of healing? I don't remember that...
EDIT2: The myth about being "high-threat" is that most priests use it right as the tank is pulling if they use it, before the tank has a chance to grab any aggro, and therefore all the mobs will rush at the priest. You either want to pre-cast it before the pull, or just save it for when it's really needed (timable spike damage, etc).
Edited, Oct 28th 2008 5:08pm by lsfreak