Hi S.!
We too have two little girls who adore(d) their pacis - our 3.5 year old and our 21 month old (2 years and 1 day apart).
The elder *loved* her paci, but mostly used it for in the car, night time, and whenever she was sad (or convenient for mom!). With #2 on the way and therefore lots of transitions coming for my oldest (big girl bed, switching rooms, potty training) we chose to not sweat the paci before her second birthday and I'm glad we made that call. We waited until baby sis had been around awhile and finally made a plan to pull the plug when eldest was 32 months. And we invented the Paci Fairy.
We were shopping and discussed things the Paci Fairy might bring in exchange for her pacis. I asked her if she was game for the Fairy to come tonight, and she said yes! So we did it - we put her pacis in a little gift bag and put them in our living room by the Christmas tree (happened to be December). And then she went to bed, and had a *very* rough evening. Lots of crying, falling asleep, waking up crying, falling asleep, etc. Daddy hung out with her quite a bit in bed that night. And the pacis went in the trash. Then when she woke up in the morning, I ushered her to the living to show her what the Paci Fairy had brought her! She was excited and we made it through the day with just a touch of sadness here and there (and constant talk and pride about being a "big girl" and showing folks what she had been given). Night 2 was almost equally difficult, but we made it through. She sadly stated a couple times that she wished the Paci Fairy hadn't taken her pacis away, but we also included the perk of starting dance lessons for the first time that January (few weeks later), which was for "big girls" so we affirmed that idea a lot.
As our second baby girl approaches two, I feel even less pressure to yank the pacifier. Probably because she's my second, she still seems like my little baby - no way she should need to give up her paci yet! Also, our doctor and dentist both assured us that we were okay waiting past age 2. I liked doing it at 2.5+ because we talked it through with her and she understood what was going on.
So I don't know if I have clear advice to give, but just an experience to share. Don't hesitate to email to commiserate or chat :)
Best wishes!
T.