The change should make you only marginally more willing to play an elf paladin or dark-elf anti-paladin than you were before. Paladins and anti-paladins both got a powerup in terms of a more advantageous PK range, but relative to other paladins (and anti-paladins) elves (and dark-elves) only got a modest powerup.

If anything this makes me want to play:

1. A cloud (or fire) giant battle rager (holy and unholy vulns halved for cloud & no more uncoverable mental vuln), or
2. A human assassin (can sit at 42 and have everyone from ~35 to 51 in range), or
3. A human anti-paladin (even better range = more success at spells), or
4. Either elf or human paladin (elf already a good combo w/ 900 xp penalty; reduced 400xp just gives you more ludicrous matchups).

One interesting thing this does is reduce the maximum level difference two characters in PK range will ever experience. Used to be you could have a 900xp guy in the same PK range as a 0xp guy 9 ranks above him. Now the highest exp penalty of any combo is 500. 500xp guy may not ever be in the same range as an 0xp guy 9 ranks above him. (I'd have to look up the formulas and do the math.)

So no more "level 47 human specter vs. level 38 elf/storm paladin".