Exactly why dwarves are considered Lawful Good by default is covered in the 3rd chapter. But, yeah, honestly, TSR's explanations for alignments never made sense, which is one reason why I don't like that mechanic...And most dwarves are Lawful Good how?
Actually I would think most members of most races would be neutral, at least towards other races. Tribalism is expected of anything like a human. It would be nice to see how conflicts between allied races should be played out. I doubt humans would reach for their sword if they were gentrified by halflings.
Anyway, when should I post the next chapter?