YES NO
This potential function will NOT work as effectively as the
standard one.
When the robot is far from the obstacle (the $d_i(x) > Q_i^*$
case), the potential increases as $d_i(x)$ increases, creating a
(mild) attractive component. (That is: The robot is pulled toward
to the obstacle.)
When the robot is near the obstacle (the $d_i(x) \le Q_i^*$ case),
the potential is 0, so the obstacle plays no role in the robot's
movements. Whether there is a collision or not depends on the
influence from other terms of the potential function.
Note that the inversion in the formula,
$\frac{1}{Q_i^*} - \frac{1}{d_i(x)} $
instead of
$ \frac{1}{d_i(x)} - \frac{1}{Q_i^*} $,
is irrelevant because the difference is eliminated by squaring.