Another thought: the major Dwarven settlements we see in the books seem to have been chosen for their proximity to precious metals. At least that can be said for Khazad-dűm and mithril.
I don't know if it's ever said what sort of metals or gems were found in the Blue Mountains, but the Dwarves had quite a long time to search them while Nogrod and Belegost were standing. The range was diminished after the War of Wrath and the drowning of Beleriand, so maybe by Thorin Oakenshield's time the Dwarves saw Ered Luin as being mostly played out, and thus not a suitable place to establish a new, grandiose dwarf-kingdom.
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