During one of the messages that appear during the loading screens I noticed a message that stated the Dwermer were infact a race of Elves and not Dwarves at all as mentioned in the Morrowind quest Mystery of the Dwarves.

Not on. Keep Dwarves as Dwarves.

Dwemer were referred to as Dwarves by the giants they used to live along side in Skyrim.

They were never Dwarves.

The Dwemer are called Dwarves but they aren't LOTR Dwarves. They've always been a race of elves.

They are called dwarves because the giants called them that and that just caught on with other races.

Ever wonder why you would fit in dwemer armor?

There was once a race of giants, who are long extinct. They saw the Dwemer as smaller copies of themselves and called them dwarves. That nickname as stuck with the Dwemer ever since. The giant race are the ones who built the Halls of Colossus -- one of the places you visit in Arena - the first TES game.

The last of the Dwermer in the Morrowind quest looked dwarvish, my mistake. Time to change a few years of thinking. Shame, I would have liked to see a return of them, not just another race of elves.

As others have said, they were called Dwarves due to their encounters with Giants, the early Atmorans then talked to the Giants and learned that there were 'small dwarves' that lived underground.

In reality, they were roughly the same height as the Dunmer, therefore roughly the height of an Imperial.

They probably kept the name Dwarves instead of Dwemer to annoy them, just like they did with the Dark Elves (Dunmer), High Elves (Altmer) and Wood Elves (Bosmer).

Oh, and the Khajiit were elves too.

Morrowind actually lets you see what the Dwemer looked like -- you get to meet some Dwemer ghosts.

Uh... there were never dwarves in Elder Scrolls for them to return. The "Dwemer" who disappeared were elves. Obviously?

Half of his body was missing and the other half was disfigured by Corprus, so he didn't really look like anything But if you played the expansion Tribunal, you met a ghost of a Dwemer - he was roughly the height of an Imperial.

The were noted as being Elves in Morrowind too. The Dwemer have always been Elves, hence the 'Mer' part of the name.

Dunmer (Dark Elves), Altmer (High Elves), Bosmer, (Wood Elves), Dwemer (Deep Elves), Falmer (Snow Elves).

Guess what the Orcs once were?

I thought the Dwemer were a nice, twisted take-that at traditional disneyfied tolkienated dwarves. And being elves. Elves with beards, no less! No wonder the Giants thought them similar. All the other Aldmerspawn can't grow a good 'stache.

The Dwemer has always been Elves.