....so where is one supposed to play on this pattern?

Your ball will tell you. 

Getting into that "i'm supposed to play here" mentality is not going to lead to success. 

Other guys played them inside with a fall back shot not getting outside of 12 at their breakpoint.

This is a great example of my previous comment.  You had it up the outside, others playing the fallback, when I played this pattern in my summer PBAX league I was playing with a 1000 grit Pursuit-S directly up 12 VERY slow and VERY soft.  Anything with ANY swing was NOT going to wrinkle.....essentially what WE saw (and again this may not be the same for everyone) played like  a true flood.