The Way We War

[Kuruharan]

While it mentions the use of shields with the Dwarfs of the Iron Hills (and let us not forget Thorin Oakenshield) the book also mentions the use of two handed weapons. How are Dwarfs suppose to fight in an organized fashion with no means of defense.

I wouldn't propose that they do at all. However, the shield appears to have been a fairly standard piece of dwarven equipment. Their standard practice may well have been to swap back and forth.

Unlike the sword, it does not allow for stabbing (well you can, as seen by the movie Gimli) and needs to be swung or chopped in order to hit your foe. If the Dwarfs are to fight in groups they would constantly be in danger of hitting one another.

However, when you are shorter and outnumbered, which they ususally were, fighting individually isn't a prudent course to pursue.

I wonder whether Dwarves had crossbows.

Never any reference to them in the books.

Hobbits were 2-3 feet

Two feet...that seems just a bit too small.