Plot hole: Piper is initially skeptical at Phoebe's theory that the Evil Enchantress could be Paige in a past life, because Paige lacks the Enchantress' ability to summon the elements. However, Piper knows that in Phoebe's past life she had a pyrokinetic power, which she does not have in the present.
Plot hole: According to Paige's "fairy tale" the witch ends up with the prince. If this is really a past life, the sorceress ended up with the prince in the Middle Ages. So why do they have to fix it? Everything was just going the way it did according to her fairy tale, and good magic was obviously still present in the world.