lol looks like you guys have been hit by the Seal of the Crusader nerf bat from patch 1.2.2
Seal of the Crusader: Fixed a bug where damage per swing was increasing instead of decreasing when Seal of the Crusader was active.This resulted in a dramatic increase in damage per second (DPS) that was unintended. The tooltip for the spell displays the intent of the spell:
“Fills the Paladin with the spirit of a crusader, granting additional attack power. The Paladin also attacks faster, but deals less damage with each attack.”
The overall increase in DPS from Seal of the Crusader should only result from the increase in attack power and not from the increase in attack speed. We understand this is a significant decrease in the power of this spell, but was a necessary bug fix to ensure both overall game balance and the viability of different Paladin Seals.