A couple of things which must be kept in mind (not sure anyone's pointed these out yet) :
1.) Brain size *is* linked to intelligence, but the issue can be more complicated than that also.
2.) Females have smaller brains than males, but this does not have a significant impact on intelligence because of two key factors:
- Female brains pack about the same number of neurons into a smaller space.
- Male brains are larger in part because they have a larger navigation center
(this is why males consistently score much higher on spatial sub-tests of IQ tests, this ties in with who was doing the hunting and tracking in the past - and in some cultures still. Males needed to be able to find their way around better, and to predict the movements of fast-moving prey animals or predator animals in a way female brains did not have to become as refined at doing - this plays into modern observed differences in driving ability, gaming ability, etc BUT REMEMBER THIS IS ALL *ON AVERAGE*)
3.) The larger navigation center is also why whales and dolphins have such large brains. They are intelligent, no doubt, but most of the size advantage they have over human brains is simply in the area dealing with navigation. This is necessary given their life in the ocean and keeping track of migratory patterns, etc.
Interesting side note, you know how they say human brains have actually been shrinking since switching to more agricultural, stable existence? It's this same navigation center which has been the thing shrinking, for obvious reasons.
Even more interesting side note: When explorers first encountered Eskimos they were amazed at their ability to keep their bearings in a vast, featureless arctic environment. No landmarks of any kind were discernible to the European explorers, but the Eskimos knew where they were and how to get back nonetheless.
What I've heard is that Eskimos have the largest brains of any human group, and it is precisely due to an over-sized navigation center in their brains, just like with dolphins and whales.
For this reason I strongly suspect that the old tales of Native Americans (Plains tribes, etc) being fantastic trackers, are probably true and probably tied to this very same reason.
The navigation center in the brain shrinking in Europeans due to switching to a stable, fixed location agricultural society would obviously not have happened to these peoples who never made such a switch.
As others have pointed out, dwarf people usually have a normal sized head. As for the very tiny lady pictured in the OP? I would be very curious to know her IQ. I suspect it may indeed be low.
Phrenology may have been flawed (mostly because of the limits of science of all kinds at that time), but the basic notion that brain size does correlate with intelligence is not wrong. Nor should anyone have ever entertained the idea that it could even possibly be wrong. It's a very common sense connection. It's no coincidence that no other animal has a higher brain size to body size ratio than humans, and that we are also the most intelligent beings on this planet.
But as I said, it is more complicated than just a direct bigger = smarter thing. More considerations than just size have to be taken into account. Which regions of the brain are large? How many neurons are present? etc.
None of this is meant to be racist, sexist, or offensive in any way. I just find this stuff fascinating. I think everyone should find it fascinating. Not let considerations of what's offensive get in the way of that fascination...
I've heard that we only use 10% of our brains.
Not true.