So, are we making this a magic set with cards based on Dwarf Fortress, or are we trying to recreate Dwarf Fortress with magic cards? Most people seem to think its the latter, but I think it would be better to have the former.
He's doing this as part of a competition, with non Dwarf Fortress people, so it would be better off with the former in that case. Dwarf Fortress currently has almost all of its emphasis on Dwarfs, so if we try to recreate the game in card form, then we'll be forcing one type of deck, which is never healthy for a set. In addition, we need to have some basics that go in all sets.
And that's why I made "strange mood" have a generic effect. Its a nice nod to the effect in the game, and yet it can be used without Dwarfs. Because most of the Dwarf cards are probably going to be red (and I'd guess that most of the Dwarf inventions would be blue), so it'd be odd to have a blue card need red creatures to work. It can't be red, either, as it makes no sense in red.
Also, try to make some basic, vanilla creatures that are exciting. Any designer can create fun, exciting cards. A master designer can create fun mundane cards.
Anyways, some more stuff off the top of my head:
Legendary (White?)
Enchantment - Aura
Enchant Permanent
All numbers on enchanted permanent are increased by 1 (This includes power, toughness, and costs of abilities)
Dragon 5RR
Creature - Megabeast Dragon
RR: Deal 1 damage to target creature.
7/7
Bronze Colossus 10
Artifact Creature - Megabeast Construct
Prevent all damage that is not combat damage that would be dealt to Bronze Colossus.
6/6
Elf Warrior 1G
Creature - Elf
Whenever a creature that Elf Warrior dealt combat damage to goes to the graveyard, gain 1 life.
1/1
Goblin Snatcher 1R
Creature - Goblin
B, Sacrifice Goblin Snatcher: Target player discards a card.
1/1