yes dwarfs get magic. it is actually a neat rule system for them. i personally think it is VERY powerful. not the cataclysm spells like other magic but if used right can be very effective. i cant really explain it here, but i can answer questions you might have after you read the book.
i did another SoM game yesterday LM vs O&G. it was a great game, esp after my slann Miscasted and then the fulcrum miscast rearranged all of our wizards. suddenly he had a mage on my side. the very next turn his catapult aimed at my steggie and deviated its course and killed his mage. nothing like d6 str 9 hits with mulitple wounds coming at you from your own troops. lol
SoM is very different games, but are very fun. i still put in my plug trying to get one tournament game as a SoM scenario.