Well, the toys, the first wave of He-man toys were around for quite awhile before the cartoon was created. Originally, there was no Prince Adam, no Sorceress, King Randor or Orko. He-man was just He-man and he shared Castle Grayskull with his arch enemy Skeletor for no reason what so ever.
The next editions of the He-man action figures and accessories were then based on the cartoon. That's where the likes of Prince Adam, The Sorceress, King Randor and Orko come in. Then there was that horrible movie adaption. Which inspired another series of He-man paraphenalia introducing newer figures from that movie and a newer look for He-man.
Personally I do like the very first series of action figures and acessories only. Though, if a RPG game is to be made from this, then I guess they should base it on one of the cartoon versions. I haven't seen head or tail of this new cartoon series made a few years ago now. Some people have said it's not as good as the first one, though the more modern animations certainly are a improvement.
As for pereferring He-man to Conan. I still agree that He-man came from Conan. I guess it's just a matter of opinion. Had they continued with the plan of making a series of Conan toys, I would have been just as happy to follow along with that.