Apart from the fact that I will not use the fact that Filwarf have no beards at all (I prefer to think that the majority still have at least short beards, but that's just a matter of taste), and that I will still have them speak dwarvish (although a corrupted version of it - I don't see the dwarves losing so much of their culture in so little time), I like the rest. I have expanded a little on the early Filwarf history that you sent, I'd like to know what you think of it.
Birth of the Filwarf Dwarves
by Giulio CarolettiAmong the Dwarves that migrated, those who settled on the Isle of Dawn, starting from the II century AC, were the ones to depart most from the traditional dwarven ways.
After an initial positive situation, as dwarves were invited by the Thyatians to help them in the building of strongholds and fortresses (like Redstone - Saxa Rubra), an ambitious dwarf from Clan Skarrad named Gloin Sargar brought with him a group of followers from Rockhome to the mountains near the Thyatian/Alphatian frontier on the Isle of Dawn, where he founded the fortress of Konbuhrad ("golden dawn") in AC 209. He crafted a Forge of Power and chose for his community the grand name of Clan Konwarf ("those born from the dawn", or "dwarves of the dawn": a double reference, to the island where they had settled and to the hope of a new age of expansion of the dwarven race in the east).
Gloin had the idea of slowly unifying all the dwarven families of the Isle of Dawn and absorbing them into his clan, but faced many problems. In the first place, Thyatians and Alphatians didn't like the idea of a powerful dwarven community in an already politically unstable area; worse was the fact that most dwarves of Dawn didn't care about his idea. Many dwarves belonged to Torkrest families who were enemies of the Sargar family to which Gloin belonged; moreover, most dwarves were mercenaries paid by the Thyatians to forge weapons and build war machines and siege devices.
Indifferent to the politics of the Konwarf Clan, the Denwarf of the Isle of Dawn, removed from the traditional dwarven clan life, lived as mercenaries among the Humans, who paid them very well for their services; ultimately, they fell more and more under the influence of ambitious mercenary captains.
In AC 336, one of them, Thrak Wharkarr, secretly paid by the Thyatians, led an army of northmen and dwarven mercenaries to Konbuhrad (a name that hadn't brought much luck to the dwarves), conquering it after three months of siege. Thrak and all his soldiers were immediately exiled by the Clans of Dwarves of Rockhome. Gloin Sargar, before escaping, invoked the power of Kagyar to curse the Forge, so that no dwarf could ever use it. The followers of Wharkarr didn't dare to profane the Forge, and left it there, a fact unknown to humans of the island. The dwarves of the Isle of Dawn that didn't return to Rockhome (because they had been exiled, or because they had learned to enjoy their new life among the Humans), developed a new culture. The Denwarf called them sarcastically Filwarf ("dwarves of dusk"). They are seen by other dwarves more or less like illegitimate and bastard sons are generally seen among Humans.
At the return of Gloin Sargar from the Isle of Dawn, Clan Konwarf was declared extinct, and all surviving members joined the other Clans of Dengar (Sargar returning to the Skarrad, for one).