The funny part about this is, if i recall, the MC is in Abandon because she ran away from home after being frustrated her dad wouldn't let her make weapons.
So it might just be that the Dwarves are very good/naturally disposed to create quality weapons, but a weapon's purpose is to hurt and kill. Ergo, they simply sold their weapons to the force that would actually use them, and this led to them being glued to the demons reputation-wise.
Also keep in mind the hook of this series is that the Hero destroys any weapon he uses. Not even the MC can create a weapon that won't break for him after 1 use.
It appears that this might be a more nuanced discussion on the nature of weapons and their role in conflict. You need them to fight, be it protecting or attacking, but after a fight is done, you don't need them. So what do you do with them? You could destroy the weapon, but that destroys any craftsmanship that the weapon displays. All the effort that went into it is gone with it, and there's no proof as to the artisan's skills. You could hang up the weapon, but people will ask about it and either be worried you'll use it against them, or they'll idolize it as a symbol of strength and power. If they're worried about it, they'll worry about you, isolate you, and that would spiral into a serious problem. If they idolize it, they might associate it with "The Good Old Days" where men were men and other such nonsense. They might want to try going back to those 'Days' and whip up misplaced fervor, find a figurehead to lead them, and create an army to try and recreate the Roman Empire (again!).
