Agartha's Ancient Ones are also old. And they're untalented...
I doubt dwarfs have the reach to be great attackers.
Anyways, I'll check this mod out Sunday, but ATM I have this to say.
It seems with 'bad dwarfs' you have some naming problems.
You may get some ideas from Norse or German mythologies.
http://en.wikipedia.org/wiki/Dwarf
http://en.wikipedia.org/wiki/Norse_dwarves
You might call the nation of 'good' dwarfs Nidavellir, and the bad dwarfs Duergar