May be exactly the spreading over to many places spurred their dying out. Dwarves were very proud and individual peoples. I think als long as they had a chance they settled in very small units of close kin. Remeber that even in the decline of the exil of Thror, Thrain and Thorin they did not try to reunit their family tribes: Thror and Thrain never went to the Ironmountians were most of their people dwellt with her cousins Nain and Dain.
Respectfully
Findegil
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