After watching this several times, they aren't dwarfs. They are different aged children, different sizes, some taller some really small. All dressed in red coats, not football jerseys. In the credits you can see them linked as "Children in the woods" or something.
I don't think this is related to the joke, it's yet another f'ed up thing about this movie. I kinda get the whole ordeal thing and the religious things, but it's still a pretty messed up movie. Being a horror fan I wasn't really impressed, it's more of a sideshow for lilly artists, honestly.
There are so many things to be explained in this movie, I thought the internet would have something on this, but everyone is equally as clueless, except for the typical IMDB poster that says we're too dumb to understand it, but fails to give out an actual explanation.
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