Are they a good choice for a homestead?
I may be biased, but Yes, I think they are a fantastic animal for a homestead.
They don't take up much room, they are quiet, they don't smell much if cared for properly, you can use them for their meat or their wool, they breed quickly and have large litters. Also, rabbit manure is rich in nutrients and is considered "cold" manure so it does not need to be composted before being added to your garden.
On our farm we raise and breed German Angora's. While they are a bit more work than most rabbits, the payoff is better for us. First, they are friendlier than most breeds. Considering they need to be sheared every 9-12 weeks, they tolerate being handled very well and will sit mostly still while being sheared or brushed. They do need to be groomed several times a week because their wool can get long and matted and since they are bigger then most rabbits they also need exercise in an outdoor run.
Angora wool is 6 times warmer than sheeps wool, so they are considered livestock and should kept outdoors and out of the harsh elements.
You can make money from their wool which can sell between $10.00 - $12.00 and ounce. Plus the fact that breeding them can bring in anywhere from $100.00 - $300.00 depending on the quality of the rabbit. Once bred a rabbit can have anywhere between 4-12 babies in one liter! So, they can be a more profitable option for a small farm. Plus, if you know how to spin and knit, you can sell your homemade goods at craft fairs or farmers markets.
So, if you're looking to start a small farm or business, rabbits are definitely the way to go!