Here's my thoughts on a better version. Everyone hated the absolutes. Not every person was completely committed to one alignment paradigm and detected as such. That was really hard coding people into some foolishness and game mechanic buggery.
My thoughts are this. Assume that everyone/thing is Neutral in respect to the Law/Chaos axis, and Neutral towards the Good/Evil axis. Then, you must actively choose to be labeled Lawful, or Chaotic. You must choose to be Good or Evil. If you choose these concepts, they are binding and you are tagged as such. A paladin (as currently written) must be Lawful and Good.
Now, further expanding this is my concept of tendencies. I may be Neutral, but tend towards Lawfulness, without being hauled off to Mechanus when I die (Planescape reference anyone?). So, the tendencies would be represented in parentheses and not be binding nor labeling. So, I might make a human cleric then who is (Lawful) Good. I tend to follow the laws but do not detect as Lawful. I do detect as Good.
My rogue however might be Chaotic (Good). He is essentially Chaotic Neutral, but frequently performs good acts. He only detects as Chaotic however.
This also adds a fun twist to NPC's. I think a much more realistic approach. Suppose then you Detect Evil on that Lawful (Evil) tax collector. He is not an evil person. He just sometimes does bad things. That lich king however might be Lawful Evil. That gnoll might be (Chaotic) Evil or even Chaotic Evil.