The word priorities means nothing to me without context. Priorities for what?
Spirit buff does nothing for Paladin.
Most people have the opposite problem, they want to go Dwarf for the racial but want to go Human for the looks.
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What is your #1 focus in the game. Because for most classes human is not the great choice for pvp.
For classic, humans aren’t best in slot for PvP. However, they are during WOTLK. Notice i said ‘future expansions’. Perception is one of the best racials come arena in TBC, and every man for himself for WOTLK.
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We are playing in classic, your advise is terrible for now.
Ok cool. Don’t really care what you think though. I’d take sword/mace spec and perception in pvp over stoneform or escape artist.
For leveling purposes, human is better. You can effectively autoattack (like 90% of your damage) mobs one level higher provided you’re using swords or maces. Stoneform as already said won’t do much for you since you get cleanse, and other than treasure finding the dwarf racials aren’t of any use to Paladin.
For endgame non-PvP stuff, it depends. If you are going to tank or play ret, the human weapon skill racial will save you thousands of gold as generally any plate/mail melee DPS have to pick up edgemaster’s handguards if they aren’t a human (or orc using axes). This prevents you from getting glancing blows, which in turn increases your DPS substantially. If you are ret, the last thing you want with a 2-hander is glancing blows.
For PvP, it’s just up to preference. Stoneform will remove bleeds, perception can help detect rogues/druids.
5% spirit does not really matter since Paladins get the bulk of their efficiency through holy talents, MP5, crit, and +healing.
I mean obviously just play what you think looks best and everything else falls into place. I’m hardly the optimal class/race combination.
In terms of functionality, Human is the best hands down. Mace and Sword Specialization will help you a lot during the leveling process, diplomacy is one of the best racials in the game. But you should play what you like, at the end of the day, fun should always come first 
There is your answer friend.
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And blind!
Dwarf no contest. You can stoneform out of blind.
Human would be better if you wanted to meme as ret but anything else dwarf bis.
There is not even a comparison for pvp. Those two above are miles better than anything human brings for pvp.
Weapon skill doesn’t effect PVP.
It actually does. Weird how things work, isn’t it?
It does but doesn’t matter that much. Hit cap for pvp is just too low.
Stone form breaks blind.
It also clears garrote and rupture which I’ll use if facing a shielded Paladin.
5% spirit is nothing, play which you like better is say.
3% I believe.
If you want your paladin to carry over to TBC and you’re interested in PvP, Dwarf 100%. Instantly clearing 5x wound poison and crippling with Stoneform vs teams with rogues (90% of your Classic TBC games) is extremely good.
Roll a warrior instead.
Stoneform makes as little difference as the human spirit.
You can’t use guns, so the dwarf specialization is wasted.
You can use swords so you get +5 IIRC from a human.
So I would say human.