artistchoice

Anons ask about Dwarves
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[Athyallë]: He called upon his companions to present to him beings to inhabit the world he had built. The sky and mountains, the grass, dirt, the rocks and caverns he so carefully coded were of no use to him. He wished for intelligent life to take his world and make new creations beyond those he could imagine.

Three companions came to him with three very different beings, all with different tendencies and strengths.

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All three pleased the creator Notch, but some more than others.

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After all, he had made his world with the intention for it’s resources to be used. It was less of a want for control or renown that he had made the world, and more for discovery and collaboration.

The dwarves encompassed both, mining the resources in the rock and bringing them to their cities to build. This usually consumed most of their time and the creator Notch felt they were most relatable, thus were the favored race. The testificates gathered resources from the surface and created customs. They did not build nearly as much but they gave meaning to their surroundings. They were the second favored.

But the elves, those that conserved, did not use the world to its potential; the creator was fond of their contributions architecturally and their discoveries but did not find much more to interest him.

The two favored races, as a result of their culture and their being favored, settled most of the lands and underground. 
Because of their biology and way of life, many elves settled further away, in very specific places and did not populate nearly as much because of extended lifespan.

Generally they were, and still are, a fairly rare people.