For recreational blackjack players, who use basic strategy, and don’t count, does the house advantage increase as the penetration increases? I believe it does because the deeper you get into the shoe, the greater the absolute value of the count will tend to get, which should trigger count-based strategy changes. Since the non-counter wouldn’t know when and how to make such changes, he would be making more mistakes as the count gets further away from zero. Thus, wouldn’t a non-counter be better off at a table with shallow penetration?
In a non-cut-card game, the house advantage is always the same for the non-counter. Clumps of high or low cards are just as likely to appear at the beginning of the shoe, as the middle, as the end. Just because the count is zero at the top of the shoe doesn’t mean you’ll have an exact balance of high and low cards. You seem to be suggesting that the cards are more clumpy at the end of the deck. However, if that were true, then the odds would change if the dealer dealt the cards in reverse order. Surely that is a ridiculous notion.
Let’s say the basic strategy player has 16 against a 10 late in the shoe, and hits. If the count were high, standing would be the right play, resulting in what would look like an error to a counter who was watching. However, if the count were negative then hitting would be all the better. In the end, it averages out, for the basic strategy player.
For reasons I explain in my blackjack appendix 10, the basic strategy player should prefer a game with a continuous shuffler, if his goal is to minimize the house edge. Aside from that, the house edge is not affected by penetration. I should add that with a shallower penetration there will be more time spent shuffling, and thus a lower expected loss on an hourly basis.