I guess I lowered the Deed Die to keep the Warrior as a superior weapon while the dwarf either hits harder or (...)
The problem, as I note above, is that the deed die not only affects the deed, it is also the dwarf's bonus to hit and to damage. So by lowering the deed die, you are going opposite your goal to making him hit harder.
If I understand your concern with the dwarf correctly, my recommendation would be to remove the deed die entirely, and give something new:
- good bonuses to HP (e.g. roll twice, keep highest, as someone else suggested). D10 to D12 changes little really, IMO.
- interesting resistances, e.g. to FORT and immunity to poison
- nifty defensive stances that can be useful in battle (somethign akin to the deed, but usable defensively), e.g. something that allows him to stand his ground, defend nearby allies, total defense for one round that makes him nigh unhittable, perhaps an attack to break rock around him and collapse the ceiling on his opponents
- bonuses to hit (and damage?) to replace the loss of the deed.
Sidetrack: In my game, I've removed the halfling, dwarf and elf classes. I modified them into something else, but now that my game is over, I've realized that next time I'll probably ditch them altogether. The first reason is that I dislike the stereotypical tolkien-esque flavor that inevitably (it seems) comes with them; and secondly, I don't like their mechanics. The four base classes each have cool mechanics to make them unique; while the dwarf is like a fighter that smells gold, the elf is like a wizard capable of wielding a sword and the halfling becomes a luck-giving two-weapon fighting machine. To me, halflings should be far from the best fighters, but between their luck and their two-weapon fighting, they are almost up their with the fighter in terms of efficiency.