The paladin's healing not being very useful is certainly useful information though. We've had a hell of a time dealing with the healing niches and we'll keep working on it.

The healing not being useful was from my perspective. I'm not sure how the Paladin player himself felt. It was useful that he had the move because he used it twice to bring back the Thief who had stabilized after a Last Breath roll, but as the GM I was looking at my monsters knowing that anything that did its normal damage to the healed Thief at that point was going to kill him again.

With your new proposed rule, I'm not sure if I have an easy time parsing "cause problems for", especially since village is the lowest level. At first I thought "would a gang of rowdy toughs really cause problems for an entire village?" But then I thought that if a village was beset by a gang of rowdy toughs the people that live there would probably consider it a problem. I think that using addition rather than multiplication seems less scary, which I like. With these rules my big lizard would be doing 9 or 13 points of damage rather than 24, which seems a lot more reasonable to me.