The Dwemer were Our Little Cousins before the Night of Tears. The Imperial and Elven "Researchers" have misinterpreted Our History before, and after Saarthal We even chose to disavow Kinship to any Elves.<--- Headcannon.
Dwemer were of the same hieght as Imperials and Chimer, the Ridiculous Idea that they were as short as a Breton or Bosmer is a Falacy.
Dwemer had well kept Beards on Thier Men. The Dwemer did not view "being" in the same way Men and Mer currently do. Thier World View led to Thier Necromancy of Our God Shor, and The Dwemer were cast from existence.
Some say the Dwemer ceased to Be, but Yagrum is proof of this being wrong. Some Others say the Dwemer await Judgement, while Others say The Dwemer are trapped trying to get to the Beginning of Everything.