Conformity is not a universal indicator of intelligence in children
Because innovation is part of the American culture, adults in the United States may be less likely to associate children's conformity with intelligence than adults from other populations, according to research from developmental psychologists. Ref. Source 5b.
I do not think that Conformity is a sign of intelligence. It shows that people will find a place to fit in and be part of the mass as it goes through life. As long as you fit in and go along with others you do not have to be smart. It just shows you have the ability to fit in and may be go unnoticed by others. This can be both a good or bad thing.