I saw my first Velveteen Lop last February at the Pennsylvania State Convention in Lebanon. What a lovely, beautiful rabbit. But I did hear the same issues that Peg mentioned. They had health concerns and they didn't breed true. (Sometime you got lops, sometimes you got rex, sometimes you got something unrecognizable!)
If they ever get them to breed consistantly and true, they would be interesting. But mention to your friend that in developing any breed, it takes a LOT of work to get one or two that have the qualities you are looking for. And a LOT of rabbits are produced that don't have the qualities you want. What do you do with all those rabbits? Not all will be pet material, none will be show quality...
Besides the fact that to really work on a new breed or variety, you had better have 50-100 cages that you can dedicate to the effort. You need breeding cages and extra cages to grow out babies to see how they mature, you have to feed a lot of rabbits, you have to take care of and maintain a lot of rabbits. And you had better know a lot about genetics to understand WHY you get certain traits/colors/fur types/etc.
This isn't something someone can or should do witha couple of bunnies in the back yard.......