Yes. The IRS wording of Q&A 7 can easily leave the impression that a conversion can be made of an inherited non spouse IRA because an IRA is included in the definition of “eligible retirement plan”.

However, take a look at Q&A 1 regarding comments that the distribution must be considered an eligible rollover distribution to qualify. Under Sec 402(c) distributions from qualified plans other than IRAs are made eligible, but IRAs are not and Section 408 has never been changed to make a non spouse beneficiary distribution eligible for rollover. This has become somewhat of a glaring inconsistency now, and I think there is a decent chance that this will be changed at some point.

Following is copy of Sec 408(d)(3)(C), still applicable for now:
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(C) Denial of rollover treatment for inherited accounts, etc.
(i) In general
In the case of an inherited individual retirement account or individual retirement annuity –
(I) this paragraph shall not apply to any amount received by an individual from such an account or annuity (and no amount transferred from such account or annuity to another individual retirement account or annuity shall be excluded from gross income by reason of such transfer), and
(II) such inherited account or annuity shall not be treated as an individual retirement account or annuity for purposes of determining whether any other amount is a rollover contribution.
(ii) Inherited individual retirement account or annuity
An individual retirement account or individual retirement annuity shall be treated as inherited if –
(I) the individual for whose benefit the account or annuity is maintained acquired such account by reason of the death of another individual, and
(II) such individual was not the surviving spouse of such other individual
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Actually the place to look is Section 402(c)(11). As added by the Pension Protection Act of 2006, it allowed a nonspouse beneficiary to roll over to an inherited IRA “an portion of a distribution from an eligible retirement plan.”

An “eligible retirement plan” is defined in Section 402(c)(8)(B) to include “(i) an individual retirement account described in section 408(a), (ii) an individual retirement annuity described in section 408(b) (other than an endowment contract), (iii) a qualified trust, (iv) an annuiity plan described in section 403(a), (v) an eligible deferred compensation plan describedin section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A), and (vi) an annuity contract described in section 403(b).

While Notice 2008-30 caught everyone by surprise, at that point, it appeared that a nonspouse beneficiary could roll over either qualified plan benefits (perhaps only if the plan so permitted) or IRA benefits to an inherited Roth IRA.

But then came the Worker, Retiree and Employer Recovery Act of 2008, which amended Section 402(c)(11) by adding the words “described in paragraph (8)(B)(iii),” thus limiting this to distributions from a qualified trust (in other words, distributions from a pension, profit-sharing or 401(k) plan).

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