The dwarfs in the 1937 film were mythical creatures.Hobbits were portrayed by full-size people over 20 years ago in the Lord of the Rings. I fail to see the reason for a conniption now.
Besides, so what? This is a business decision. I'm against dictating to people on what movies they are allowed to make and what actors they can use.
One of the actors in the live action reboot does have the dwarfism disability.
Exactly how many people with dwarfism does the law require Disney hire?
Snow White is supposedly extremely popular in Latin America, it's a decent capitalist decision to cast a popular actress of Hispanic descent to play snow White