Boners, funnily enough, contain no bone. A penis is simply a bunch of tissue, and a dwarf's body has no problem growing tissue. This results in a dick that, quite frankly, looks just like any other. Our average size is five to six inches, just like taller guys. Only difference is, ours are on small frames and thus look way more impressive.
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Plus, the surprise factor when somebody sees it for the first time without knowing what to expect never gets old. Just ask my wife, past girlfriends, or the poor NSA intern who's no doubt watched me undress by now. God did his best to make amends: "Hey, yeah, sorry about messing up your bones and dealing you a lifetime of repeatedly explaining that no, you do not want a Happy Meal. Here, have an optical illusion that makes your dick look giant. Better?"
Yes, actually. Much.