Can't help you with kibble. Some people use a cat harnesses or ferret harnesses on puppies but I'm not sure if they would work for a 3lb guy. Puppia makes a XS step in vest harness that is quite small that might work.
Amazon.com: Puppia Soft Dog Harness - (Soft Vest... Does he itch his ears? Sometimes scratching at the ears can cause hair loss. It certainly is not normal for a Yorkie to have hair loss on the ears.
He sounds like a little darling. I'm so glad you saved the little guy.