I already know the Dwemer took part. People don't need to keep repeating it like I don't know this. I mentioned the Dunmer to imply it was Nerevar who was responsible for the victory. In fact, I should change that, because they were still Chimer back then.
The Dunmer were rebelling against the Nords. Remember that the First Nordic Empire ruled over Morrowind, yes?
The problem here is that you think Jurgen 'downplayed' the thu'um. He didn't. He merely changed it's focus. Many people challenged him on his views and they all fell before superior voice.