Patch Available - KMST 1.2.408

Blast is still a horrible skill, and 1h weapon + shield doesn't beat out a 2h weapon unless you're packing serious STR%.

False. The slight multiplier advantage 2H weapons have is almost entirely canceled out by their slower speed.
Potential is just gives 1H a bigger edge.

Missed the comment about Blast. That's false too.

Need I remind you that KMS doesn't have attack scrolls for shields.

But they have scrolls for Armor for W.Atk, correct?

Paladins need a shield to get their defense boosts, yet they have the ability to equip 2h weapons is what I'm talking about.
It's obvious that Demon Slayers are better 1h weapon users, so why not make their defensive boosts apply to all (and just leave guardian as a shield-only) and put some attack boosts to Paladins using 2h weapons?

Namely 2h blunt weapons. Why does that weapon class still exist if they're not going to give any point to using it?

The problem with your suggestion is that you're cutting out reasons to go 1H instead in an attempt to make 2H viable. That just shifts the problem in the other direction instead of fixing it.

As I've said before, the more obvious solution is to make Paladins use 1H weapons, period, and make Heroes use 2H weapons, period.