Have you tried just giving him a bowl of pellets a day instead of the gravity feeder? I heard it was bad to give them unlimited pellets as well - they should be eating mostly hay and not as much pellets. I don't feed Zeus pellets at all and he's very healthy. And then you wouldn't have to worry about him wasting all those pellets when he digs in the feeder.
The house rabbit society says that mature, healty rabbits should be fed unlimited timothy, grass, or oat hay (or a mixture), 1/4 to 1/2 cup pellets per 6 lbs of body weight, at least 2 cups of chopped veggies per 6 lbs of body weight (or more if you don't feed pellets), and a small amount (2 TBL or 2 oz per 6 lbs) of fruit.
As for the digging, it could just be fun for him, who knows. Zeus has an obsession with trying to dig blankets and clothing, lol.
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