I thought I had already posted on this thread before, but apparently not. The effect may not be that great, but it is an affect that only Paladins can cast. I guess I am still just a really big fan of being able to cast spells that my class can not normally cast (breaking the rules is fun). This is a nice little buff if you do not have a cleric/paladin in the group. Also, if I am not mistaken, this buff also heals. It may only be a ~100 hp heal, but it sure beats bandaging.
Also, I apologize for skimming, but what was the recast time on this item. If it has a long recast, then I agree the effect may need adjusting.