[quote=ishtar]
Humm.... For some reason, I have a feeling that it's a case of 'Absolute power corrupt absolutely' with the Dwemer. They did make a lot of advanced technology and even machinery that still works centuries after they were gone, but maybe whatever achievements they managed to achieve got into their head and they bit more than what they can chew. Whether it was the Daedras got pissed at them or experimental tech gone wrong.
[/quote]

Basically this... Plus the Chimer (AKA: pre-curse Dunmer) gone to war with the Dwemer and supposedly (out of their religious beliefs) Azura went all "fuck this" at some point, cursed the Chimer to have their the color of ash and their eyes red to represent the color of all the blood they split mercilessly and then made all of the Dwemer disappear. If you play Morrowind you could actually meet the last surviving Dwemer specimen (HE'S FUCKING [B]FAT[/B] AS HELL!!!) somewhere. He got the Corpus Disease and talks about his people but STILL not useful much information is given about how his people disappeared.