Dwarves are not mundane. They are not merely small men (certainly not the stocky, angry, inexplicably Scottish men that modern pop culture has universally made them out to be.) What’s missing in most depictions of dwarves is an essential magic, an elevated, supernatural cleverness. We get our notion of dwarves mostly from Tolkien, of course, but they’re much older than that. In Norse mythology, the dwarves are closely related to dark elves, the Svartalfar. Like any good myth, dwarves are a metaphor: they fascinate because they represent the spark of creative, destructive magic. They combine intemperance with wonder and amazement.
The Norse dwarves were dangerous, sharp-minded, over-eager to invent, to dig deep, but they also were unattached. They didn’t belong in Midgard. I think Tolkien realized that and created a story for them which gave them an authentic connection to the world. My dwarves are definitely thematic relatives of the norse dwarves, but I’ve taken a page out of Tolkien’s book as well. The story of the dwarves is a developing tragedy; slowly, they are falling asleep and returning to the stone that they were illegitimately hewn from. If your connection to the world is a tenuous one, then a threat to that connection makes it all the more important. I’ve got a short story on the way that goes into it a bit.