Doing research on the Dwemer, or Dwarves, on UESP, you find that they are only called Dwarves because they lived primarily around giants...
In fact, the name of their race gives away that they were in fact elves, by the "mer" in "dwemer".
It does bring the question though... It says Dwemer rely of speed, not brawn... Why would they make such bulky armor then?
I've this theory about their armor. Most of their automatons are large, at least bigger than your average elf. The dwemer were obsessed with technology, robots, and torture. i find it reasonable that their armor resembles a bulky robot.