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I've been playing as Dwarves and have come to the conclusion that Chaos should only be chosen in one case: if it's a short game that doesn't extend into the mid-game. In all other cases, it's just one school of magic – Light (a versatile magic that's relevant at all stages of the game). If the game goes into the late game, it might be two magics – Light and Summoning (for the Rune Shield). Chaos is specific to Dwarves and requires a certain build, but it has a high chance of not paying off, especially in the late game. For example, the "Armageddon" tactic might only have a 50/50 chance of being successful, and even then, only against a less skilled opponent. Experience shows that Light is the optimal magic for Dwarves.
Sometimes, you have to choose Chaos against Sylvan when going for a Castle build, but this is more of a necessity than a preference.