My heart bleeds, but I nonetheless agree
Given that we're in front of a supposedly royal guard, I couldn't see any defect, were they to acquire a, let's say, higher status (a similar case compared to the Guardians of Caras Galadhon). Under this perspective, Palace Guards might be given an additional unique feature, beside the already-existent one.
But I would like to address another point, even if it's just a very vague hint: if Palace Guards are to be limited, wouldn't this be a proper occasion to give Mirkwood the possibility to recruit a lesser version of them? Namely, the common (regular) lancers we see in BOTFA. Yes, in doing so, Lothlórien would dispose of three lancer-type units (of which one is heroic), but the favourable argument could rely on the fact that Lórien and Mirkwood do have separate roles in the game, and they represent two different realms. This choice would grant the Woodland Realm a bit more importance and uniqueness, along with sticking more loyally to the cinematographic atmosphere. Also, we could regard this addition as a possible means via which we might placate the hunger of some users to have Mirkwood as an independent faction (given that the main reason frequently consists of them desiring the subfaction to be more prominent). What do you think?
Obviously, the latter argument is not really the best approach to develop this proposal, nor would I ever alter my convictions due to those poor grievances (an independent Mirkwood). Just see it as a general topic: making Mirkwood more relevant (if it really deserves such treatment).