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It renders casters of any type who have to be front row for whatever reasons (no tank, missing a reaching weapon, pet dies really fast) unable to do anything of use.
If you're leveling as a caster in the front row, being blinded has extremely little influence on your combat effectiveness, since if you cast an offensive spell without a target, it automatically targets your melee target.
If you're really having trouble getting dirt kicked while leveling (And I think paladin would be one of the most affected by this, next to early-level scouts and mercs), then keep the NPC tripped, bashed, or dirt kicked himself (NPCs don't use offensive abilities while blind) via your own skills or a pet. If your PE gets low, you hold off on those skills, and end up dirt kicked, then take advantage of the recent instant-sleep change and snag a quick nap for a tick, and by then the dirt should be nearly gone. Dirt kick really shouldn't be impeding you -that- much.