[Endoperez]

Elves - Tolkien came up with elves. Hoburgs are pretty close to the mythological elves, or tomte, in the early era; the armor and such they have later is different. Gnomes, from few sites, are also good repressentations of the elves of the lore.

Fair Folk were in DomII (tuatha), and will reappear in Dom3, but are currently missing.

There are many nations that have some or even all features a dwarf nation would have:

All Vanheim nations have dwarves. Svartalfar are, again, a good representation of dwarfs (the original plural), but not of dwarves (Tolkien's plural).
We also happen to have two strongly-armored, magic-weak nations in MA (Ulm, Agartha). Ulm is an easier example: strong, tough and resilient soldiers, mountains, superior metals, Master Smiths, Earth mages, forge bonus, elite guards with castle defence bonus, crossbowmen, sappers... Humans of Agartha live under ground and see in the dark; their magic and national spells and Pale One recruitables wouldn't make this purely dwarven nation, but a nation of dwarf-Agarthan alliance. Best LA Agarthan mages happen to be quite similar to Svartalfar, too.