Well, for one thing don't breed him if he has adifficult personality. Part of that can be genetic, and ifyou do think he's that bad then you shouldn't pass it anothergeneration. And since neutering can help, it might be best tojust neuter him and keep him as a pet.
I think it's really common for rabbits to not like beingheld. Even the most social and loving of my four hates to bepicked up and sometimes nips, although he's learned that nippingdoesn't get him anything because I refuse to react other than sayingno.
Of course, how are you holding him and how are you picking himup? He needs to have his full body supported while he's beingheld. And I know a lot of breeders pick rabbits up by thescruff. In my experience all that does is make a rabbitscared. My mother-in-law once scruffed Mocha when she was ababy. She was the friendliest little thing and she liked tobe picked up, but when she was scruffed she was ticked at me for awhole day! Loki was usually scruffed at the shelter, and he'dhunch in a corner with terror in his eyes. I couldn't go nearhis neck for some time because he'd shrink back in fear. Sowhen you pick him up, put one hand under his upper chest and one underhis rear and lift.
Also, like Haley said it's really good to allow a rabbit to interactwith you on their terms, not just yours. Let him run around abunny-proofed area while you sit or lay on the floor. I don'tknow if it's possible for you, but all four of my buns were verygrateful that I allowed them to jump in and out of their cages on theirown. You'd have to have the cage on the floor, though.
There's more info in the Bunny 101 thread on aggression:
http://rabbitsonline.net/view_topic.php?id=12319&forum_id=17