Tolkien's work is based off of Anglo Saxon and Nordic legend and folklore, as well as much other Old English and similar writings, so it is very possible that Dwarves do come from those stories.
I still think the original Rankin/Bass The Hobbit movie will be much better than the one Peter Jackson will make, as The Hobbit is a story not meant to be of epic sizes, but a tale of one's journey "there and back again", as Tolkien stated himself in a sort.