It is just ugly, and siding with the dwarves is what the text wants you to do, because they have all the positive qualities. The Duergar are left with nothing but hatred and bitterness, after their warping by the Mind Flayers and abandonment by everyone else. And you can't side with them, because they are horrible, terrible and must be stopped.
I just hate the entire thing.
I'm not going to have an axe left if I keep grinding it at this rate, but: do you see how much of the problem here originates from the fact that the objective morality of the universe is trying to force you to side with the party whose own conduct in the story is abominable?
You can't tell a tragedy when every party in the story objectively knows right from wrong.
The problem with these rules isn't that they're just dumb on their own merits, it's that they make all of us dumber for trying to fit the stories we went to tell into their simplistic, childish, cruel and abjectly hypocritical frameworks. Practically everything we've been fighting over for the past few weeks is the direct result of trying to reconcile the amoral activities of sword & sorcery heroes with objective cosmic forces of right and wrong whose presence in the game I have yet to see ever actually improve it.
A lot of people complain about the violence and specifically the violence against women in the Grand Theft Auto game... but just imagine, for a moment, the outcry if Rockstar Games added a Karma Meter to Grand Theft Auto 6... that went up every time you murdered a prostitute. It wouldn't improve the game, and fundamentally, that's what we're arguing about here.