As population increases, animal souls are promoted to human before they are spiritually advanced enough in terms of impulse control, etc.: this shouldn't have happened, but karmic progression is automatic, after all--it's a force of nature. But the 'animalization' of humankind bodes ill for civilization.
No doubt the same goes for elves, dwarves, and so on.
When the campfires grow dim, stories are told. Stories of lost cities, great heroes and legends of old. One of these is the story of Knurlheim. Once the proud capital of the Dwarfs, now a ruin- abandoned long ago. Filled with vast riches and treasure. It’s secrets forgotten with the decline of the Dwarfs, long ago. No one knows is certain if it ever exsisted at all.