I tend to agree its not the list. With an army that small, you have to keep everything concentrated and focus on making about 2/3 of your opponents army fight your entire army. I think you also overestimated the effect the knight's AP1 cannon would have on your army. Stay dispersed and advance slowly up the board. A good shot might catch 3 or 4 models in the blast, killing maybe 2 a turn. Bide your time for the right moment to take it down on your terms.
In moving forward with the list, what are your thoughts on rolling Telepathy instead of Sanctic for my Librarians? Invisibility should be better at protecting my Termies than Sanctuary, and while Levitation is inferior to Gate, it is still pretty good. Also, there is still a S10 blast in the Telepathy tree as well. I can still roll Divination for my Inquisitors, giving me Prescience at minimum, possibly goodies like ignore cover or 4++ invul.
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Yes, I really like Paladins, but in the current meta there's too much S8 out there to make them worth taking.