Exactly, let me put it into a different perspective. The friction between the pad and the rotor is always parallel with the rotor. You could say that the friction between the pad and the rotor was like a hand pushing on the end of a wrench trying to turn it. Now imagine you had a really stubborn bolt (covered deeply enough in another thread) would you want a long wrench or a short wrench. Of course you would want a long wrench. The same thing applies for brakes. The longer the lever arm, the greater the stopping power from the same amount of frictional force.