Youngbower, I have always heard apples are good rabbit bait. Your recent events of losing a rabbit on a snare and having one eaten is why I like the box traps. Hard to lose your prize to another predator in a box. That is also why I like trapping in water and setting the drowning sets. It takes your fur under water where it is protected. With coyote numbers increasing like they are the box trap is a better way to go. Another option would be to have a trigger release that will pull your rabbit off the ground after snared.
Rabbit fur is used in tying flies for fly fishing. The under soft fur is dubbing material in tying. If the hide is clean, stretched and dry it should sale. The hide itself is not needed only the soft fur, but they usually sell together.
Good Luck