Yup, they get haircuts and the fiber is spun into Hula Bunny Yarn. The commercial HB yarn is spun by some nice folks in Pennsylvania. They mix in some very fine Merino sheep's wool for bounce and a bit of silk for shine and then send it back to me. Then it gets sold in a local shop and we use the money to go on vacation, although not this year.
http://hillsidefarmhawaii.com/pages/yarn/bunnies.html I need to update that page and add more pictures,
I spin pure angora which is a softer feeling yarn, insanely soft and luscious, although it takes too long when I spin it for me to sell the yarn. It also has zero 'bounce' so it makes great scarves and shawls, not so good for anything that should cling or shape itself to the body. I also save the best fiber for the pure angora since there's some variation in fiber texture from bunny to bunny. We've been breeding for 'silky' although some are still more silky feeling than others.
The yarn gets sold and we will sell rabbits as well, although so far we haven't been charging for bunny 'berries' but give that away for free when folks want some for their garden. It's the only fertilizer we can afford since commercial fertilizers have to be shipped in.
Bunnies are sensitive to scent and territorial, so when you take one bunny out, the remaining one is in it's own territory and the new bunny is an interloper. If they were both shifted to a neutral space, then they may get along although it's not guaranteed. Perhaps you could mix some lemon juice with water and spray the whole hutch and both bunnies with lemon scent before putting them together? Two adult intact males will rarely get along and they can kill each other. Sometimes a doe will be a 'diva' and want to be Queen Empress Bunny and she will chase everybunny else until they get the same memo.
Bunny berries don't need to be composted, they're a 'cold' manure. I just put couple inch thick layer on the top of the garden and scuffle it into the topsoil when replanting a garden. Although, we have a lot of bunnies and are using raised bed gardens so our ratio of bunny space to garden space is almost even.