Board Thread:Warhammer 40k General Discussion/@comment-25177957-20140720052135/@comment-4851119-20140724135909

Never knew the Squats were in full-scale 40K myself. I know they showed up as a "support faction" in Epic; any Imperial army (Space Marines, Guard etc.) could have up to a certain percentage of its point value be Swu

In the end I think GW removed them because they were trying to make 40K feel less like Warhammer Fantasy in space and they thought that removing space Dwarves would help with that. It was around the same time they removed the Zoats (the Tyranids' space Centaur slave warriors) too.