Jeoshua, I'm glad that you think that way. It's the same for me...
I don't see how dwarves are a "Cruel" race. They're not even close to cruel, they're practical. Needless savagery does nothing except make a dwarf a goblin. Dwarves are people of trade, of work. They forge great artifacts, level mountains, and merchant off their goods. The "Evil" Dwarves you're thinking of would be more like Duergar, or the dark dwarves. Look to the Forgotten Realms books for examples.
Dwarfs follow a rigid principle, full of honor and integrity. If something must do something cruel to ensure the survival of themselves or their friends, they won't hesitate. But they won't go up to "Goodly" folk and start slaughtering them. Dwarves prefer to do battle with evenly matched opponents, for such is a show of strength. Goblins mass up against the weak, they're thieves and murderers. Do you see Dwarves thieving, murdering? No, you see them living the lives Armok wished for them to. He is the All-Father of Dwarves, and he's not a "Cruel" god. He/Dwarves may be merciless is some cases, but they are not without compassion. They have families, friends, lovers. Goblins have none of that.
*sigh* I probably sound like an idiot. Simply put, Dwarves have honor. "Evil" races do not.
Ahrokian Charvosh! Strike the earth!