so the layer of dwarves inside the galactic dust at the cold "middle" of the disk is because the dwarves are lighter and didnt propel themselves merry go round style?
Sort of. The short answer is that stars that are lighter tend to get knocked around more, and unless they are close to a massive object (like the galactic plane) then they are much more likely to get ejected from plane entirely.
Remember: F= G (M*m)/R^2, and F=ma
Where F is the force of gravity, G is a constant, M is the larger mass, m is the smaller mass, and a is the acceleration
Since both objects feel the same force, the smaller mass is accelerated (or decelerated) that much more.
One process that isn't precisely understood is what proportions the stars form in. The rarity of bigger stars points to the fact the smaller stars are easier to create, so there should generally be more of them for any star formation event. So perhaps a better question is, why don't we see more dwarfs outside the central disk? The answer depends on how stellar orbits around the core evolve. There are three possible outcomes for smaller lighter dwarfs:
1) They get captured by bigger stars, forming binaries
2) They get lightly "captured" by the plane itself (sort of like being mass locked to a planetary ring)
3) They get slung shot by larger stars, and gain enough velocity to escape the plane entirely and are "boiled" off into the Halo or intergalactic space.