The dwarf is reborn as Snow White... And competes with the queen for power? No, no, no, she doesn't have that kind of ambition and wisdom, and her end will probably be even worse than Snow White's. Compose a fairy tale with the prince? Forget it, she is a commoner and cannot play the noble game.
So what can she do? Do something that dwarfs can't do...
Purpose: Live in the present