I too saw the Dwarves at Target last night, though I did not pick up a set.
This is obviously a roundabout way for LEGO to give fans something that strongly
resembles The Hobbit
/ The Lord of the Rings
, without acquiring a complicated tie-in license. Right? In the recent past, they've given us Gondor-reminiscent Crown Knights, round shields from the Vikings (Rohan reminiscent), Horse Knights from KKII (3) (more Rohan), and dark red, Mordor-like Scorpion Knights from KKII (1, 2). There's an evil Sorcerer out now, and an impulse set, good Magician...somewhere? Okay, they are generic fantasy characters, but they do make "imagining" LEGO-as-Tolkien much easier.
So thank you LEGO, for the dwarves and the orc-like "trolls" (and the new troll, too)...I just might pick up a set sooner than later!