I still say dwarvish shouldn't have gender. Gender doesn't play an important role in dwarven society, as it does in human society.
Language geek to the rescue!
Grammatical gender and natural gender haven't anything to do with each other, for the most part; they're mostly arbitrary, and even when they aren't they still don't have anything to do with each other. Are we to expect that speakers of Italian, German and French, which have a masculine/feminine gender dichotomy (as well as neuter in German), are necessarily more sexist or were at one point more sexist than speakers of Chinese, Japanese, or Turkish, which don't have any gender marking at all?
For that matter, what about "weirder" gender systems from non-Indo-European and non-Afro-Asiatic languages? What if Dwarven were to work in this regard like Dyirbal, and had four genders: one for men and most animate objects, one for the famous women, fire and dangerous things (violence and exceptional animals in this case, as well as for some reason water), one for edible vegitation, and one for everything else? What if it were to work like Fula, which has twenty-five
genders, only one or two of which correspond to anything resembling natural gender? What if it were to work like most Algonquian, Athabaskan and Uto-Aztecan languages and have a gender system that divides inanimate/animate?