There's something to be said for not making your primary first receiver option make 30 tackles a game right up the guts, to be fair. It's why Peats was so valuable; his defensive workrate was so good that it allowed Paulo focus more on his attacking game.
DeGois is making the same amount of tackles. The problem with a turd is that no matter how well you polish it, well, you know how the saying ends. Paulo just isn't that good - he is a fringe first grader, who has experience, which is probably why he keeps getting picked in our very inexperienced backrow.
Paulo isn't a half, and doesn't play much like [a modern] one. He doesn't kick the ball or call the set plays, instead he seems to be the 'link man' for the middle forwards, trying to make their job a bit easier, and is just the 'shuffle forward' in passing the ball to the halves when they are wider. A lot of teams do it, and like you say, it keeps the defence in 2 minds.
We lose some 'go forward' when he is out there, and we also lose a lot of grunt in defence. I don't think he is worth playing, but I also see the real danger in having 3 guys with very limited experience on the paddock as our backrowers.