Because Turbine doesn't just "make" the races how they feel. With Dragon Age, Bioware can do whatever they want because it's their IP. The same is not true with LotRO and Turbine. LotRO is all based on Tolkien's works, and his writings say female dwarves look, sound, and dress the same as males.
The Tolkien society judges everything that goes into the game, as this game has been named Lord of the Rings they are bound by lore, if they named it Middle Earth Online they would have a slightly larger reach for breaking lore
Also, female dwarfs in lore stay at home and don't adventure.
If you would like to roleplay as a female dwarf, feel free to wear a dress etc etc. But (as in lore) you're going to look like a male dwarf and others are going to refer to you as male.
A spaceship from another star / They ask me where all the people are
I tell them I'm the only one / There was a war, but I must have won
The Tolkien society judges everything that goes into the game, as this game has been named Lord of the Rings they are bound by lore, if they named it Middle Earth Online they would have a slightly larger reach for breaking lore
The people who own the rights to LOTR are Middle-earth Enterprises (formerly Tolkien Enterprises) and I don't think that change of name you mention would make any difference to what Dwarves might look like. Originally, a long time before beta, when the game was still to be called Middle-earth Online (MEO), there was concept art of beardless female Dwarves of just the sort you usually see in fantasy games but there was such a strong reaction against that that Turbine dropped the idea. It's a long time ago now but I'm pretty sure that was quite some time before the game was renamed LOTRO. Khafar might remember, he was around back then as well.
I have seen people going on and on about female dwarfs. I have a suggestion why dont we make female dwarfs like they are in dragon age?
I played a female dwarf in Dragon Age, and I actually forgot she was a dwarf half the time, because lets be honest, they just look like short attractive humans!
Xandarien Elanessa, Híril of Pupils of the Istari on Evernight