Worth noting that we still don't "know" what happened to the Dwemer. It's all just theory and speculation. Even the last dwemer admits that he doesn't know for sure. We have another theory in skyrim thanks to the quest with Arniel. I don't think we'll ever know for certain.
http://www.imperial-library.info/content/interviews-skeleton-man
Ah. I will tell you the truth, because you will believe none of it. The Brass God is Anumidum, the Prime Gestalt. He is also called the divine skin. He was meant to be used many times by our kind to transcend the Gray Maybe.
The first to see him was the Shop Foremer, Kagrenac of Vvardenfell, the wisest of the tonal architects [Mechanists - MN] Do not think as others do that Kagrenac created the Anumidum for petty motivations, such as a refutation of the gods. Kagrenac was devoted to his people, and the Dwarves, despite what you may have read, were a pious lot-he would not have sacrificed so many of their golden souls to create Anumidum's metal body if it were all in the name of grand theater. Kagrenac had even built the tools needed to construct a Mantella, the Crux of Transcendence. But, by then, and for a long time coming, the Doom of the Dwarves marched upon the Mountain and they were removed from this world.
http://www.imperial-library.info/ForumArchives/Made_Up_Word_Round_Up.html
"Kagrenac was devoted to his people, and the Dwarves, despite what you may have read, were a pious lot-he would not have sacrificed so many of their golden souls to create Anumidum's metal body if it were all in the name of grand theater. Kagrenac had even built the tools needed to construct a Mantella, the Crux of Transcendence."
Okay. So now everyone can stop posting about where the Dwarves went. I TOLD YOU EIGHTY YEARS AGO.
Filthy with it, I am.
The Dwemer got Numidiumed, thier entire race was transformed into the brass skin of a giant robot.