I side with Conan in this matter. That said, I think Conan also needs to realize that some of the ratings problems with his show were due to the show itself, and not solely due the debacle of sticking Leno in the 9:00 time slot.
I've been watching Conan since he started Late Night, and I like him. However, after the first three weeks of the new show, there were many times where I felt his show was somewhat reserved, and just not particularly funny...even more reserved on many occasions than Tonight with Leno.
This last week has been great. It has been funny without being overly raunchy. If there had been more of that over the past 6 months, I think his rating would be better, and perhaps good enough that there would be no question of trying to put Leno back at 10:35.
I know it's popular to bash NBC, but I think Ebersol was somewhat correct when he discussed with Conan (as reported in some articles linked here) that Conan needed to consider some changes to Tonight.