Chatting on skype with a friend from here, we looked up glowing mushrooms and effects, and something stuck me. If these are same mushroom that they used to make Falmer's drug addicts and blind, then why are these the alchemical effects this:
Theres no proof that these are the mushrooms the dwarves fed the falmer. If they are it's probably because they were fed to the falmer for very long periods of time. Since elves live up to 200 years the falmer would have been eating them generation after generation for quite a while