The realm of the Mírdain (Eregion) is as you stated the home of the crafting of the 3 elven rings, by the greatest of elven smiths Celebrimbor.
These three rings were not influenced by the power of Sauron since Celebrimbor learned Sauron's intentions. He sought counsel with Galadriel soon after this. It was then that Celebrimbor was given permission to create the 3 elven rings.
But before this, the elven smiths of Eregion aided Sauron in the craft of the Rings of power. They were soon destroyed by Sauron in the Second age, hence the disappearence of the Elves from that land.
Edit: The Elves were great smiths since they were very close friends with the Dwarves, hence the similarities in lore.
[ January 31, 2003: Message edited by: Iargwath ]
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