I dunno who came up with that stupid 3rd power law. It is complete crap, the energy scales linearly with the mass of reactants. The energy density is constant obviously, otherwise you get unphysical nonsense.
Its valid if you consider volume, in fact it may have been originally stated like that by someone who new what they were talking about, but I've never seen it stated like that. So lets just drop that old chestnut, or at least state it how it is.
Of course small amounts of flash deflagrate, and over a certian limit the mode of reaction transitions into a much more violent one (just ignore the bloody flash detonates arguement for a moment). There is definately a large difference in the scale of the physical effect produced above and below that "boundry", but that is because of the rate of energy release, the Power not the Energy. Two concepts than are widely misunderstood and used incorrectly as synonyms. The chemical energy of many HEs is the same order of magnitude as that of common pyrotechnic compositions, it is just that HEs release it a whole load more quickly, which is why they are brissant.
Technically, it's not valid for volume either, since for a constant density, doubling the volume is the same as doubling the mass (either way could be thought of as doubling the "amount").
It
is valid if you talk about the dimensions of an amount of flash, though. Double the dimensions of an object and it's volume (and thus mass if the density is maintained constant) increases eightfold (in 3D space, anyway). So for a sensible linear scaling of power with mass, 2x dimensions = 8x power.
You're probably right, though, in postulating that some perversion of that concept gave birth the the previously-mentioned 2x mass = 8x power rule-of-thumb. Though, it does put paid to my plan to gather a thousand tons of flash powder together in the desert somewhere, and then hold the world to ransom with my Doomsday Device, capable of releasing the energy of a million supernovas, almost certainly creating a black hole and possibly even collapsing the entire universe...
On the bright side, though, 6" flash salutes won't explode with all the force of a tactical nuclear warhead, killing everyone present at the show, so that's something, anyway.