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Apologies if this topic is old but-

I just assumed that DE were the DE of 40k (wha..?).
But since reading a bit about the Chaos Dwarfs they seem much more Dark Eldar than the Dark Elves do. They both have a society reliant on slaves, participate in raids rather than full on battles, somehow manage to live in only one city, and, most importantly, GW seems to dislike them a lot (either actively or passively- you choose).

Am I off track?

There used to be Chaos Squats, back in the good old days. Presumably they're still living in the Eye of Terror, building daemon engines and such. So I'd have to say that you're off base here.

DE are space dark elves. like eldar are space HE. it's very simple