Luckily sixty-odd years of posterity disagrees.
"Pinocchio" is a gem of a movie and was / is a high watermark for Disney and for animation in general. To describe this movie's status as "iconic" would be putting it mildly. It has more art (in every sense of the word) and child-like wonder in a single frame than "The Lion King" has in it's entire running time.
"The Lion King" is the type of bland corporate "product" that represents everything that is wrong with the Katzenberg era Disney Studio.
And incidentally Disney had already made "The Lion King" many years before and made it better. It was called "Bambi".