Why did Iluvatar allow aule to create the dwarves

[tom bombariffic]

But remember, Each of the Valar is made from a part of Iluvatar's mind. When they sang ere the world was created, each was singing from a different part of Iluvatar's brain. That's why only when they started singing all together could the world be formed, as all of iluvatar's mind was focused on it.

This means that Aule is part of Iluvatar, and so when he made the dwarves, although he made them at his own discretion, it was a part of Iluvatar making them. If Iluvatar destroyed them, it would be like destroying his grand-children.