Well, that is if you dont get your dwarves to tantrum and go berserk
And these are only the consequence of death and/or really bad managing. So the best thing to do is to eliminate moods (delete [trANCES] from the entries of whatever person you're using) to even still minimize the chance of death and downward spiralling. And in real life people don't go: "Hey, I know, I'm going to grab some shells, raw adamantine, steel, cut rubies and feather trees and claim this workshop to make a silly sceptre worth over 9000 monetary units!"
If you wanted to increase reality and minimalize the fantasy input, you could always make the Dwarves Caucasians, the elves Asians, the humans Africans and the goblins Middle-Eastern (yay for stereotyping!). Or to whatever peoples you're using the setting in. You could even use Adventure Mode as an example of nomadic people. roaming the lands in search of food, but that would be a bit hard to do, since there are still cities and such...
The only downside to this type of game is the length of it all. I'm assuming it'll (nearly) all be aboveground, so it would take ages to make the houses: first the walls, then the roof, other walls, another roof... But then with mass-build implementation, it'll take a lot less of time (at least to designate).
Also, (relatively) unrelated: it's rated A, for Armok's blessing.