This would be like an underground village. The Dwarves would be 1 1/2 blocks tall and could live in little underground cities. There would be different variants of dwarf for different biomes, like ice caves, deep dark, and lush caves. Their houses would be made of different kinds of stones, basalt, and smooth basalt. The dwarves would trade with a 1.17 ore/crystal, possibly amethyst, copper, or maybe a new material. They also could have active mineshafts leading away from their city, and there could be a small chance one could spawn in an abandoned mineshaft. I feel like it would just add some life to the caves.
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