» Thu Jun 14, 2012 4:26 am
"As previously mentioned, the Dwemer were no shorter than any other elven race, despite being classically described as such. Their physical appearance is hard to judge, as http://www.uesp.net/wiki/Lore:Yagrum_Bagarn lives bloated and deformed by http://www.uesp.net/wiki/Lore:Corprus, and the only other visual examples come from sculptures and http://www.uesp.net/wiki/Morrowind:Undead#Dwarven_Spectres found in their ruined dwellings. It can be deduced, however, that long beards were popular amongst the lost elves, and they preferred heavy metal armors and robes. Their remaining features could be described similarly to that of the other elven races, as no specific information exists."
From the uesp wiki
So really small stature is not the reason, but maybe they were the Dwemer children's chairs lol