All right, I rip off Tolkien's guess that the modern day equivalent would be dwarrow, but I go back to Norse folklore and mythology to build them up.
Which means they are mighty masters of magic and use a lot of runes. I even manage to introduce that before they start demonstrating their smith-work is up to both mythic and modern fantasy standards.
Don't think I'm going to call them dockalfar though. Just as the ljosalfar hanging about will go by ylfe.