Let's go through it step by step:
1) The buildings for the Dwarves are simply ridiculously cheap.
2) The Dwarves have a normal starting position (archers are available on level 2, the infantry doesn't die easily on its own, and the supply wagon compensates for the small number of arrows).
3) When playing on large maps, the Dwarves have a clear advantage over everyone (except the undead).
I agree about the rush; it's the only thing that can work. But usually, a normal rush doesn't work, so you have to grind (or slowly increase the number of skeletons by reincarnating them with a magical kick in the rear=)).
P.S.: Dungeon rules, especially Sinithar, but it's very difficult to control the troops; only the Hydras are durable, the rest die like flies (it's a pity), and Deleb turns demons into a combat-ready army.
And about Deleb... he doesn't need an army; he provides an incredibly fast and easy start for the Demons!!!
P.S. What bothers you about the combat effectiveness of the demon army (even with a mediocre hero) :smile07: