I don’t know, but whether or not The Dwarfs were intended to be human people with dwarfism, it would make sense to me that advocates for equality, dignity, and sensitivity would want Disney to be cautious in a remake.
The idea of “a bunch of humans with Dwarfism…” seems like the sort of “having fun by making fun of” that was not uncommon in past times, similar to what you might have seen in a sideshow or minstrel show. The exaggerated features could support this interpretation.
The “mythical beings” understanding is strange to me. I grew up on Lord of the Rings and other fantasy adventures, which had beings called “dwarves” who, as
@Vegas Disney Fan mentioned, always seemed to be a “race” (ugh) of rugged, bearded people of short stature who worked in mines… which might support this interpretation.