So, if I understood them correctly, the entire plan is to motivate dwarves to craft and compete with elven magical tools by having them make tools that are made magical using mc and girl's skills? As in, entirely hinges on their capabilities, and they are the ones actually making any magical effect? And any dwarf that is meant to be motivated will then ask how to do it and be told "you can't"? And mc and girl duo will at worst become targets to be kidnapped and used as tools by some dwarf who wants to ensure he can craft magical tools to his hearts content?
Or was the plan solely to create an upset in the monopoly so elves become hostile to dwarves? And if they find out about mc and girl duo, either capture or assassinate them? And then once upset is finished, they will stop helping dwarves and leave the new market to collapse and elves to slowly gather power again?
Why did the dwarves suddenly lose motivation anyway? How did they even live before, or build a country? Is it that the magical tools is a new development, or was they outcompeted since ages ago and only recently realized it?