The appeal of non-humans in fantasy

A few days ago, someone posted a question asking us what we found appealing about non-human species in fantasy. I said I like them because they're one way that fantasy fiction takes subtle themes of the real world and makes them obvious. And it got me thinking.

I saw a video about goblins once. The author discussed at length the reasons why goblins are so prevalent in modern fantasy. The main idea was that they represent a part of the human nature. Goblins are chaotic, mischievous, troublesome, petty. They make stuff that barely works out of junk, they have some form of undying optimism in the face of a life that keeps beating them down. Goblins are endearing because they're us when we're not trying. They're a way for us to look at our worst selves, and to feel that it's OK to be like that sometimes.

There's also dragons, a creature that's omnipresent not just in fiction, but also in folklore and mythologies throughout the world. I can't remember where I read this, but I remember someone describing dragons guarding treasure as an allegory for life: the things you want most are guarded by your worst fears. That's why dragons, one of, if not the most dangerous creature around, the ultimate apex predator, hoards and protects wealth that it has no use for. What good is a mountain of gold coins to a dragon? Aside from luring adventurers to its lair to get easy snacks, the dragon is never going to use that treasure.

I thought about goblins and dragons and what they may or may not represent, and then my mind went to dwarves. What is it about dwarves that makes them so popular? I mean, even outside of the countless kitchen sink fantasy worlds with their own versions of stout, beer-drinking, gold-mining, grudge-bearing, beard-trimming proud warriors with Scottish accents, there's Wind Rose and Deep Rock Galactic. Dwarves get much more love than, say, elves. But why? I think it's because they're essentially blue collars. Let me explain.

Dwarves are hard workers. The wealth they have, was earned through hard work. They dug all their gold out of the ground with their own hands. Their shiny equipment and mighty fortresses were made by themselves, using their exceptional skills in smithing or jewelry or stoneworking. Dwarves are all about manual labour, honest work for an honest pay. They stick together, protect what's theirs, they're staunchly loyal to their friends and will fight their enemies to the bitter end, and after a long day's work, they go to the tavern to drink with their comrades. Dwarves are old-school blue collar workers, through and through. If they were real, they would be unionized. I see dwarves as an idealized version of proud proletarians, who make a good life for themselves through their own merit and dedication to a job well done. And that's, I think, why they're more popular than elves: simply because they're much more relatable to more people than elves.

Of course, all of this is just my musings, so what do you think? Am I making sense? What could other stock fantasy species represent about humanity?