While I've always liked his thematic ability, I overlooked this card for a while. Playing a dwarf deck one handed against The Watcher in the Water convinced me of its value.
I've typically built a dwarf deck around Dáin Ironfoot and used him as the primary defender with his naturally high / and gained actions through Unexpected Courage, Erebor Record Keeper, Cram, etc (no big innovation there). Often as Dáin takes on all comers, his can start to take a dive with repeated attacks. At this point in my card pool acquisition, Warden of Healing is my preferred source of restoration. And naturally the warden is great at healing two characters 1. So there is a fine combo with Dori, spreading out the damage a little so your tank and healer don't get overwhelmed. (This has been a problem for me in the mentioned quest since Mountain Wargs and various tentacles can be difficult to dispatch and frequently you have to figure out a way to just defend several attacks successfully for a couple rounds.)
Also, in a pinch Dori can be sacrificed if a shadow effect catches you unprepared and would result in the loss of a hero. Additionally, you can elect for an undefended attack knowing Dori will take the fall. It might give you some much needed flexibility.
Obviously Dori needs to exhaust to use his ability so you're (generally) saving him for the combat phase and if his damage smoothing ability isn't needed, he has a respectable 2.