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Not quite! The castle wall creates its own penalty! Even if the distance is 5 hexes, but there is a wall, the arrow will be weakened...
Because these are not the same thing.
There are two mechanisms for calculating ranged damage - one depends on the distance (10 hexes), the second - on the presence or absence of a castle wall. During a siege, most ranged units initially shoot at a quarter of their strength. And these mechanisms work independently for each unit, and do not apply to all units. For example, Mages/Archmages do not have a penalty when shooting through castle walls, but they do have a distance penalty. Snipers, for example, do not have a distance penalty, but they still shoot at half strength through a castle wall...
So, all ranged units do not have a penalty when shooting at a distance of 10 hexes or less.
Obstacles on the battlefield do not interfere. But the wall is a different matter. ;)
But if a catapult destroys the wall, the arrow will become direct;)
