I recall that the German BB could sink British BB by ganging up on them and scoring hits exceeding the British BB's protection factor, sinking the British BB.
I had no problem with that as a kid, but as an adult, I wonder:
Without being able to distinguish their own splashes, wouldn't the accuracy of fire be significantly less if this method were used in reality? Shouldn't there be some penalty for multiple ships all firing at the same target?
Second, although a long range hit was less likely, did not they tend to be more destructive, as they would be hitting the deck and other places less well armored than the sides of the warship? Shouldn't a long-range hit be more likely to be a critical hit than a short range hit? Was that provided for in the game?
Yes, more realistic naval rules generally impose a penalty for multiple ships firing on the same target for the reasons you mention.
Longer range fire was not necessarily more destructive than short range fire as armor penetration would be less and the angles of impact unfavorable. Most of the battleships had adequate deck armor to protect against the shells they were likely to face and the decrease frequency of hits more than made up for any possible increase in destructive power.
Jutland is a very simple game system that doesn't take most of these factors into account. It is what it it.