IMO... they just grow too darn fast to be an option in smaller tanks. I had one (Foxface Lo) in my first tank for around 2-1/2 years. Then re-homed him when I moved to the 90g tank. He was a model citizen, but doubled in size in one year, and was easily 8" when we parted ways.
The Rabbitfish more commonly associated with nipping problems are the Scribbled, and Spotted Rabbitfish. Although, I'm not surprised to hear some people mention problems with the Foxface as well.
They sort of have a reputation like the Dwarf Angelfish... some do... some don't.
Good luck.