Well wasn't it that the dwarves were in decline too just like the elves? Because doesn't it say in the appendixes of LOTR that the fourth age that begins at the end of the book is of the dominion of men, and the decline of all other speaking peoples in Middle Earth. How many elven cities were left at the time of LOTR? Not very many from what I have read. So it must have been the same sort of situation for the dwarves.
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