So would you be ok if your standard party was a group of 4 dwarven wizards?
- the Karamhul (and Halflings following the same logic) go from disadvantaged compared to the other races to equal, that’s all. You could argue that it brings in the option to have much more Nordic-type Dwerger for some Karamhul realms but I don’t see a problem in that.
That presumes that they are disadvantaged, and i don’t think they are. Elves can’t priests, dwarves can’t be wizards. Humans can only be wizards if blooded, but they don’t have other racial benefits of the others. So i don’t see an issue here.
Not really, but I had the misfortune of getting into arguments with some of them back in the day and losing, then checking to source material and finding out some of Tolkein use of artistic licence. I recommend the Norse stuff to anyone who wants to use Karamhul in BR, you’ll never see them in the same light again.
Well, they’re not portrayed as magical in the Lord of the Rings movies. And we all know that is the definitive version. ducks and hides. 
Interesting, we have “traditional” magic from the sidhe and copied by goblins and humans, Karamhul magic could then be a completely different tradition, same effect (under a KISS approach) but very different theme.
Yes, that’s what i liked (and still like) about the Vikings book version. The runecasting mechanic was so simple- simpler than standard spellcasting in fact. No levels, no memorization, just simple-defined runes with simple effects (and nothing ever flashy, which helped too).
Indeed, I’d suggest focusing on what BR changed to 2e and mimicking such changes to 5e though, rather than assuming that 2e standard relics also had to be re-imported, of course then we get the question of what was standard and what was non-standard.
That’s where it gets tricky. Where does one draw the line? Just because it’s a holdover, it doesn’t mean it’s not relevant.
Given the scarcity of magic in Birthright, and that humans too could not be wizards unless blooded, it makes perfect sense that dwarves should not be- this is not just a dwarf restriction.
So don’t think of it as a holdover from 2nd Ed. It’s actually a new restriction (per Birthright) upon all the races, one which dwarves happened to have already had.
I’m sure at some point we’ll have some threads related directly to this topic where everyone will weigh in. I tend to side with Sorontar on this particular topic. But i look forward to the discussion.
-Fizz