Where is the rotor on a 440 supposed to point when at TDC on no. 1?

Yes, but there are other things to consider.
If you just plunk in the intermediate shaft/gear and distributor, you may end up with a distributor that has its vacuum canister up against the valve cover or end up between heater hoses somewhere, making it hard/impossible to properly set the timing.

By aligning the slot in the intermediate shaft in line with the engine/crankshaft, you make sure everything goes together as designed.