Did Tolkein intend for modern day Little People/Dwarfs to be linked with Dwarves from #lotr
I have thought about this alot and I think we can agree with a solid no. There is no description in his work of Dwarvews being able to intermate with any other race. In fact there is strong evidence they likely couldnt.
However hobbits could, in fact, interbreed with humans (as elves could). I suspect Tolkein intended modern day Little People to be associated with hobbits rather than dwarves.
I also say that its likelyt here is a connectiona t all because tolkein did write LotR as if it was a pre-history. So I suspect he did intend some sort of connection somewhere.