'A Conspiracy Unmasked.' What a great name for this chapter.
The name, and use of labeling Merry, Sam, Pippin and Fatty as 'conspirators' makes it sound negative. That's what one usually thinks of when there is a conspiracy. However, the conspiracy that gets unmasked turns out to reveal the strongest bonds of friendship between the hobbits. We see indeed what Tolkien meant about hobbits being tough and difficult to daunt in the prologue. None of the hobbits can possibly know the dangers they have chosen to go walking into, but fear of the unknown peril is not strong enough to turn their back on a friend in need.
Merry as the head conspirator winds up revealing he knows almost as much about the Ring as Frodo. Frodo has all the knowledge that Gandalf told him, but Merry caught Bilbo using it to avoid the S-B's. And he may not know that this is the most powerful of rings, but he knows the Enemy is hunting Frodo because of the Ring, a former treasure of Bilbo's.
This is the irksome part of the movies. I have no problem with condensing the time in the Shire down and introducing Merry and Pippin joining Frodo and Sam at Maggot's. I do think it's a shame Merry and Pippin get characterized as funny sidekicks for comedic relief. Pippin is the youngest hobbit, and shows he has a lot of growing up to do throughout the journey, but Merry is Frodo's closest friend. I can't imagine Frodo getting through this early stage of the book without Merry's knowledge and calm, cool demeanor.