I kind of like the whole Dwarf vs Elf rivalry that both races are known for, they only reason they don't murder each other both races good friends with humanity, If were to DM,
I would have a secret conspiracy where humans are the secret byproducts of Elves breeding with Dwarves, and both sides don't want anyone finding out about it.
I would also stat Santa as a Dwarf, he's got the beard, the body type, the whole hatred and enslavement of elves (they're actually gnomes, however nobody is brave enough to correct him on the matter), also if you replace Eggnog and Milk with Alcohol you'd get a stereotypical dwarf.