That strong line of warriors in the open is in alot of trouble if terror comes into play with the knights.
Id rather have my dwarves hiding in dangerous terrain than bravely falling into the throat of a dragon.

What I like about the dwarves is their technology background, thats why handgunners, cannons and the flamecannon is a must have for me. Also just painting warriors is incredibly boring.

One 4+ chance to dispell does not really negate the enemy magic though it can be very effective at times. So yeah dont bother with heros like harannin said.