What some posters are suggesting is almost like a never ending loop of impacts. The moon gets hit, debris is shot back into space, eventually falling back to the moon creating an impact which would then send more debris into space which would then fall back to earth causing an impact to repeat the process etc... If that was the case, the moon would be raining micrometeorites continuously. But that doesn't seem to be the case, otherwise the LM would have been swiss cheese.
Energy is lost with each impact. Initial impact sends debris far and wide, and assuming it didn't achieve escape velocity, that debris hits the surface with less energy, bouncing or kicking up debris with even less energy, until all the energy of the initial impact has been dissipated (like billiard balls on the initial break). Since impacts are random, debris is
eventually evenly distributed over the surface, but in an intermittent, energetic fashion, and not at like a snowfall.
The issue I am trying to address here is why there is a layer of regolith on the surface but not on top of a five inch rock (for instance) in which its base is completely buried in regolith.
That rock is part of the regolith, ejected by an earlier impact. Regolith isn't just dust.
Suggesting that moon impacts are akin to "sandblasting" or "machinegun fire" does not solve for this. (in fact, the idea of "sandblasting" sort of proves my concern not dismiss it). Perhaps there is a reasoned answer, but because moon impacts can be very violent doesn't necessarily account on how the regolith is disbursed in such a way that it will bury the base of a rock but leave the top of the rock regolith free. Thanks.
Imagine a low-energy impact near an exposed rock - the finer particles will hit the side of the rock and slide down. Some particles will hit the top of the rock, some percentage of those will simply bounce off.
Again, without an atmosphere, nothing "settles" like snow. The dust acts more like water getting splashed (not
exactly like, obviously, but it's the best visualization I can come up with at the moment).