Yes, the collar issue is one that I am struggling with as well. Mine will probably end up wearing them (with tags) at least part of the time, as I live in an area where many are not even aware of microchipping, and I was advised against going that route.
You will find that many people have different opinions about the safety of little ones wearing these constantly (b/c of choking issues), but there is always the option of a break-away collar.
The main thing is.....never attach a leash to a collar, or grab them by the collar...sensitive little tracheas!
Won Ton is super cool, and looks like he'll be nothing but fun!

How did you pick his name?