Is being "low on the totem pole" good or bad?

The background for this question is that I'm watching the latest episode of NCIS, and in this episode it is mentioned that the term "Low on the totem pole" actually is a good thing, reserved for the most honored carvings. As such, saying that someone is "pretty low on the totem pole" is a compliment, not a way of saying that you're low on rank or importance.

However, I haven't been able to find any sources online that says the same, and it seems most usages of the term use it in the meaning I thought it had, ie. low importance, rank, or similar.

So what is right?

Does the term "low on the totem pole" mean "low importance or rank", or does it mean "high importance or rank"?

From Wikipedia:

Vertical order of images is widely believed to be a significant representation of importance. This idea is so pervasive that it has entered into common parlance with the phrase "low man on the totem pole." This phrase is indicative of the most common belief of ordering importance, that the higher figures on the pole are more important or prestigious. A counterargument frequently heard is that figures are arranged in a "reverse hierarchy" style, with the most important representations being on the bottom, and the least important being on top. Actually, [among Native American totem poles], there have never been any restrictions on vertical order -- many poles have significant figures on the top, others on the bottom, and some in the middle. Other poles have no vertical arrangement at all, consisting of a lone figure atop an undecorated column.

Regardless of the origin, the term "low man on the totem pole" is generally understood to mean LEAST important. Using it to mean most important would probably just lead to confusion.

I study and carve Northwest Coast design or what you call totemic designs. My family comes from the region as well. The phrase "low man on the totem pole" is indeed taken the wrong way all the time. The most revered or "main" character of the story being told is the lowest or closest to earth. You want to show respect by it being closest to you. If you see people on the top of totem poles, it is most definitely not a sign of honor, it is shame, calling them "Shame Poles." The least favored/honored of the story is always on the top. I hope this assists you in solving any mysteries on this misunderstood saying.

As generally used, "low on the totem pole" means at the bottom of a heirarchy, hence low in rank. There are similar sayings about relative position on a ladder. As one is promoted (rises in rank), one ascends the ladder. I was unaware that the real totem pole reverses that order.

There is a resource about the low man on the totem pole.

In it, it explains that the highest part of the totem pole was carved by the least experienced carver, because the lower parts of the pole are the parts that are most likely to be viewed, thus:

...the bottom of all totem pole is sometimes the best carved part of the whole pole. Meaning wise, the low man has a much or more meaning than other figures.

So while the general meaning seems to be that higher is better, traditionally for totem poles - as is explained by NCIS - lower is better.

Well, there is always some confusion about this idiom here. This idiom was introduced by an American named Fred Allen some where in the mid 1940s. He actually used it to depict something of least importance, which was evidently proved to be wrong, as a Totem pole in reality holds the most important ones in the lower order.

So if you go by what the idiom was actually supposed to mean, it would denote something of lower importance as mentioned by PSU and Kevin. Rather if you go by its meaning in literal sense, it would denote that of higher importance.

However, I would personally prefer using it to denote something of higher importance. (It is strictly a matter of personal opinion though)