Don't let the level 1 status fool you. An English friend of mine tackled it and this was his warning to me:
That's no ordinary rabbit! That's the most foul, cruel, and bad-tempered rodent you ever set eyes on! Look, that rabbit's got a vicious streak a mile wide! It's a killer! He'll do you up a treat, mate. He's got huge, sharp---eh---he can leap about---look at the bones!
I didn't see any bones around but I'd still advise caution...
I have wondered how some mobs got their hands on certain items, but I;m not even sure how anyone can explain ow a rabbitgot its hands on armor like this.