Being Elvish would probably suck but I don't know about the Dwarves,in "The Hobbit" it is said that in some regions there were Dwarves working with Goblins,so I guess there were evil Dwarves serving or at least not opposing Sauron as well. Furthermore in the Silm it's said that all living things were divided between the two camps in the War of the Last Alliance,wich would include Dwarves on either side as well.
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Nothing is evil in the beginning,even Sauron wasn't
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