I've played Skyrim enough to wonder, when are we going to actually meet them, well not meet them, but find out more about them. I know they are an ancient race of people who died along time ago, but there ruins are filled with traps, robots, and suspiciously still rotating gears and moving platforms. There should be a DLC to skyrim, or to TES Online where we find out how complex there race really was.

it was in morrowind, the third tes game in the series, and we do know what happened to them. Although i wouldn't be opposed to more dwemer related content.

We know exactly what happened to them. You just have to know where to look.

After Kagrenac used his tools on the heart of Lorkhan he bound the Dwemer race to the machine known as the Numidium (which was a divine creation).

An example to how this works:
Arniel Gane, a wizard of the College of Winterhold, manages to acquire the Dwemer tool Keening. He uses Keening on a soul gem, and ended up binding his soul to the closest divine being (Dovahkiin).
-If Arniel had the other 2 tools and then struck that soul gem, he would have undid the creation of the entire Breton race and binded their souls to the Dovahkiin (if not all of them, then all the ones that were anywhere close by.)