I have to agree here too. I thought that Tier 3 was one of the worst looking Paladin sets, after BananaBringer, but combined with the new color scheme, it's just terrible. I usually don't hide my helm graphic because it's one of the pieces that really defines the look of a character (with shoulder, weapon, off hands), but T7 makes my female Paly look like a man with boobs. I couldn't stand more than a couple seconds of having it on :S I don't mind the shoulders "too" much, but they do look absolutely ridiculous as I'm mining ...
On the same note, the tanking cloak from Naxx10 is pretty fugly too. Cloak graphic also /off
Looking at the models for Ulduar gear (Hunter set aside, I don't think it looks very "Hunterish") I have hopes that the Paladin set will be decent again, but I'm not holding my breath.