And what is a planet? A free floating body in space that is spherical, and does not orbit any other body. What is a dwarf planet? A really tiny planet which shares its orbital space with one or more larger planets and/or asteroids.
See, the definition already confused you. You're saying that there are no language problems, yet you fail to use the term properly yourself.

A dwarf planet is not a really tiny planet because it's not a planet. A dwarf planet is not a planet. Period. It's something different, distinct. At least that's what IAU think it is. Well, I happen to disagree, and I don't think I'm alone on that.
If tomorrow morning we discovered another large planet circling the sun on a path that regularly crosses Earth's orbit, then EARTH would be a dwarf planet by that definition.
So much for "dwarf" denoting size I guess! Ah well, that's not such a big deal. But what you say is very much true – Earth was probably not a planet when life appeared on it. Go figure.