I find the greydwarfs a bit more than annoying. They aren't hard to kill, of course, once you are past a certain rather low point, but their pathetic attempts at attack become depressing. The explanation that the runestones give for their origin stretches credibility -- are there really that many great murderers and criminals in Viking society? -- and sounds uncomfortably like the rationale that any occupying power puts forth to justify its actions. It doesn't really help that you are literally using them as fuel and building materials (I'm just thankful that you don't get to make their skin into lampshades). They remind me of Ambrose Bierce's sardonic definition of aborigines: "Persons of little worth found encumbering the soil of a newly discovered country. They soon cease to encumber; they fertilize.”

Well, this is Valheim; one cannot expect the more subtle treatment of enemies that you'd get in a game like Elder Scrolls Online here. But the developers could introduce some nuance by keeping track of what the greydwarfs value most, which is clearly their trees. Why not make greydwarf hostility, as expressed primarily by spawn rate and attacks, dependent on how much damage you've done to the forest? You have control of that factor, since you can replant trees as well as chop them down. The situation might go from complete quiet if you're planting as many as you chop down to unrelenting hostility if you're the "pave Paradise and put up a parking lot" type. There's also the fact that you share enemies: greydwarfs and the undead do not get along, so perhaps you might pacify them to some degree by clearing tombs and neutralising draugr-spawning swampland.