That looks pretty nice.
A rabbit might try to dig up the grass but it really depends on the individual. If you provide plenty of toys, hides, and things to do it will be less likely.
I would use hardware cloth instead of the chicken wire so predators can't get through. And instead of buying a hutch I'd probably put up walls so they have shelter they feel safe in, but still with open space.
Nice outdoor enclosures like this are much more expensive than indoor housing though.
If you must keep your rabbit outdoors, I recommend adopting a bonded pair so they won't be lonely. By a bonded pair, I mean two adult rabbits who have already been fixed and have gone through the bonding process (which isn't always simple). Buying two rabbits as babies will often be a completely different outcome.
I see so many people end up with at least two litters because they were incorrectly sexed, and/or not separated and fixed soon enough. In this situation, it may be difficult to bond the two after they reach 6 months, even if they're the same gender and you don't separate them. They become pretty hormonal at this age when not fixed. So adopting a pair saves you the hassle of dealing with any of that, and the adoption fee will usually be much less than the cost to get them fixed yourself.
