Craster wrote:
I'd rather you wrote a short one highlighting which bit of my logic is wrong

You are confusing physics experiment land, where cows are rigid, hollow and spherical, with the real world. You are correct that the shrapnel accelerates from rest (let's not confuse this with frames of reference) to x m/s (where x is big), but confused about how quickly this happens; the reality is that, as Lave has said, it does it in more much more space than the radius of the grenade itself. Plus, even if the shrapnel is still accelerating away as it enters the body, the squishy body doesn't slow it down as much as it is still accelerating, at least for the first inch or so of penetration.
Simply look at energy. A large amount of potential energy (in the explosive) becomes kinetic energy (in the explosion), which is in the form of shrapnel and air movement. All that KE ends up in the body.
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However, if it can get to lethal velocity over such a short distance, I'd expect that the air resistance effect would be very low (sharp pointy bits of metal), so it would in fact continue to accelerate for a much larger distance
No no no. Once the explosion has happened there is no more force accelerating the fragments, only the modest retarding effects of air resistance.
You are trying to apply a basic knowledge of (I'm guessing) Newton's three laws and the SUVAT equations to circumstances (short timescales, non-rigid bodies) where they can't work. That's what you're doing wrong. Lave, start a General relativity thread so we can blow Craster's mind.