For every 12 inches away from the plant the usable light drops by half.
Not quite. The inverse square law says when you double the distance the intensity falls to 1/4. But that is from a point source radiating 360 degrees. There are other factors that distort the inverse square law - mainly reflectors and optics. So there really is no one hard fast calculation that covers every light.
Now, as to more distance equaling more penetration, the concept is this - Lets say with a given optic/light combination you get 1000 umols at 12 inches, and the fall off is 50% lower at double the distance, 500 umol at 24" - you have good penetration for about a 12". So now if you increase the intensity (while keeping optics the same) so you get 1000 umol at 24", your fall off rate will still be 50% at double the distance - which is now 500 umol at 48", instead of 24" - now you have 24" of good penetration.