That is definitely a rabbit! You can tell by the way the nostrils are shaped and the mouth... I believe it is an angora rabbit, I've seen a few with a similar look. Here's an example- http://www.northlandwoolens.com/catalog/
It's an English Angora rabbit. That photo is stolen a lot, but I know people who know the actual owner. I wish I could remember her name, but she is a well-known English Angora breeder and she has awesome pics on her site.
BTW, that's show/photo grooming. He's probably not quite that fluffy in reality, although they're still very very fluffy.
It's definitely an Angor rabbit. I have a blue holland lop, Sophie, so i'm always around little hoppy bunnies and kitties.There is a huge difference in the back legs and the facial features- especially the nose.