I wouldn't call it power creep, but it opens a lot of decks. The cards aren't necessarily better, but doing a priest deck without auchenai, injured blademaster, wild pyromancer, cabal, (all rare or epic) etc, is quite hard. Though, honestly, I think priest is one of the class where you need the most cards to have a decent deck.
Demonist Zoo would be the one that needs the least.
I think you could pretty decent (not good, but decent) face hunter or demonist zoo or even a basic mage with the cards you have. I used to have a huntard with one knife juggler and one dire wolf alpha (take that instead of raid leader if you have it, raid leader is bad), and I didn't really climb the ladder, but I had around 50% winrate (hovering at rank 19).
I heard there will be an expansion during the summer, I'm guessing a card expansion (like GvG), so hopefully they will reorganize the basic cards a bit, cuz it's getting harder and harder for newcomers to get in with each expansion and each new adventures. Though, knowing Blizzard, I doubt it
Of the cards you have, I'd recommend the following changes :
Silverback patriach is really meh, I think I prefer the ironfur grizzly, though they are better 3-drops (not taunts). Best are harvest golem or spider tank.
Shattered sun cleric isn't that good, unless you have nerubian eggs or stuff like that.
Chillwind yetis are very good, but senjins are a good 4-cost too. Frostwolf warlord is good only if your deck aims to develop a board presence early and keep it.
To have 2 elven archers, 2 northshire and 2 voodoo is too much, especially as a priest, which is kind of a late game class. The northshire is very good, so take it, but you don't always need a 1-drop, unless you're rushing.
Lord of the Arena isn't that great, and booty bay neither. Stormwind champion is good, especially if you have board control. Boulderfist ogre (the only intelligent ogre
) is a good late creature too.
As paladin, in 95% cases, you'll want to take at least 1 consecration (often 2). That's a basic card.
Also, you have 6 Lord of the Arena in your paladin deck