Quite right, Renown was never a match for a 'proper' battleship and never intended to be but would have been fine against cruisers or pocket battleships of the Graf Spee type. All warships are inevitably compromises, some better than others.
Yes, I knew that armour piercing shells had a bursting charge, I seem to remember 5% by weight being mentioned somewhere. The 14 inch gun and shell was supposed to be effective but, as you say, did appear to be somewhat disappointing in practice, although Prince of Wales did get some useful hits on Bismarck.
There is a fascinating book entitled 'Jutland - an Analysis of the Fighting' by John Campbell which describes in graphic detail the effects of heavy shells hitting different parts of warships, protected and unprotected:
http://www.amazon.co.uk/Jutland-Analysis-Fighting-Conway-Classics/dp/0851777503 When at Portsmouth recently, I noticed that on the Gunwharf development seafront they now have a 12 inch shell on display. You just have to imagine something like this, full of explosive, hurtling through the air and inpacting on the structure of the ship you are in. Quite sobering really.
Colin