Paladin and rogue in the same group - what's allowed and what's not?

[Kelb_Panthera]

A variant? I thought it was the norm that alignment could override subtype- for the purpose of determining "who's a villain and who's not"?

It can, but villian isn't a mechanical key-word like evil is. That's another of those points of dissonance between the mechanical construct and the social construct. Just because the fiend has changed his ways, doesn't mean that removing the evil he's composed of from the world is no longer a good act. I certainly wouldn't punish a good character that chose not to though.