I had picked up a beautiful little chestnut cross breed a few years ago that had a biting problem too. The folks told me they were selling her because their daughter wanted to be in 4-H with goats, not rabbits, but failed to mention the biting problem when I started to inquire about her. She was awesome the first time I picked her up and held her at their place. Very sweet and quiet. The problems didn't start until she settled in at my place. A friend bought the daughter of the rabbit I bought, and she knew the little girl of the family from substituting at her school. When asked what was up with my doe, the girl told my friend "Oh yeah, that doe used to nip, so we smacked her in the face with a piece of wood." Which, like Akane stated, only taught her to bite instead of nip. It took about three months of just handling her gently, giving treats, and spending extra time with her, and she eventually did warm up to be quite a loving doe when she realized she wouldn't be abused. It can work.
On the other hand, I did pick up a beautiful Chocolate French Angora doe from a reputable breeder with very well mannered stock that I trusted. Somehow I picked the only crazy doe in the whole rabbitry (and not a small rabbitry at that). She growled, lunged, scratched, bit, and screamed bloody murder just for the heck of it. I worked with her for MONTHS and there was never any temperament change. Temperament may not be the only thing I consider when keeping stock, but I DO NOT tolerate bad tempered rabbits. I have large lines and the last thing I want is a 13 pound fluffy ball of razor blades that needs groomed a minimum of once a week. Chocolate doe went in the freezer. The breeder was mortified when I told her about the temperament and told me that I made the right decision to cull her, and offered a full refund or trade for another doe. I didn't take either since I understand it can happen to the best of us, but she did offer, as she never noticed the doe being aggressive with her.
Just goes to show that it is most definitely worth working with them and giving them the benefit of the doubt that they will turn into good rabbits. However, unfortunately, there are still crazy ones out there, and sometimes there is nothing you can do but send them off to freezer camp.