Yesterday's post was incomplete. I feel that a race with a benefit, like dwarves with their innate directional sense and depth sense, should have some minor downside. I'm not sure what I want for dwarves. I don't want reaction penalties: racial reaction depends on actual circumstances, like how people in the area feel about that race. Likewise, being short has its drawbacks, but possible benefits as well, so I don't want to use that as a racial drawback.
I'm tempted to go all-out fairy tale on them and give them a risk of turning to stone when exposed to sunrise, but I doubt anyone would go for that. It's kind of an extreme risk for the minor abilities they have. Perhaps a susceptibility to petrification instead? Or maybe, because of their earth affinity, dwarves don't float, but sink right to the bottom of a pool or river, although they can still hold their breath or use floatation gear. This could be worked around with magic or long snorkels or breathing bladders, and may even be beneficial in a way (bonus when resisting river current, maybe?)