I don't think I really explained what the I2t actually
is very well.
Take a made-up example where you have a house on TN-C-S and the assumed 0.35 ohm Ze and your circuit has a run of 10m of 1.5mm T&E cable. What happens if there is a phase-to-CPC fault?
Cable R1 is approximately 10m * 12.1 mOhm/m = 0.121 ohm
Cable R2 = 10 * 18.1 = 0.181 ohm
Zs = Ze + R1 + R2 = 0.652 ohms
Fault current = U/Zs = 230 / 0.652 = 353A
Considering just the CPC, it is now going to dissipate I2R = (353*353) * 0.181 = 22.55kW for the whole cable, and so each meter of cable from the
CPC alone is dissipating around 2.25kW. The same as a medium electric fire.
Not good! So what stops the house catching fire?
The answer is the Automatic Disconnection of Supply: most fundamentally the fuse or MCB that acts as over current protection, but if the fault is to Earth then any RCD should also trip.
And this leads on to the next common misconception - fuses, MCB, and RCD do not limit the current! At least in any significant level here (see below). What they do is
limit the time during which fault currents are allowed to flow.
So going back to a typical electric fire, when you switch it on you normally can see a short delay until the element glows red and it if fully on due to the time it takes to heat up the metal element (and any ceramic former, etc). This is how you stop a fire and protect the cable from damage - you disconnect the supply quickly enough so the cable does not exceed a safe temperature for its insulation.
This is the 't' in your I2t value - the time at a given fault current. For fuses it is simpler to find from the current-time graphs, while for MCB you often find manufacturers do not give you the information for 't' once in the magnetic trip region, but sometimes they will give you a plot of I2t or a max value at some PFC (for example the 6kA limit for most domestic MCBs).
Going back to our example, if we had a 16A BS88-2 fuse from the plot below we see the fusing time is around 4ms:
So in this case our I2t is (353 * 353) * 0.004 = 498
Also in this case you might realise the fusing time is below a half-cycle of the 50Hz mains supply! Here the fuse is actually limiting the peak fault current.
The same data sheet (just search for F00192EN-08) also has curves for peak fault current which shows the 16A 10x38 fuse starts to limit at a PFC of around 150A RMS, and has a chart showing the fuse starts to melt at an I2t of around 200 and limits the let-through to no more than 1000 even for the huge rated PFC of 100kA.