I think that as long as you hunt for a reason then its not so big a deal. Its one of those issues where i believe its smarter to just agree to disagree.
My family are all hunters and we eat what we hunt.
Your yorkie was just doing whats in his nature. although i do agree that leaving him outside when he's not an outside type dog, probably not very nice.
And i love rabbits too, i've had a few over the years.