The baby rabbits we found the other day appear to be doing well. Their mother must be coming into the yard to feed them when we're not looking. I did see a rabbit dashing across the alley the other evening. It looked like she came from the general vicinity of my back fence.
This picture isn't great, but you can see that they now have some fur.
One of the bunnies decided to pose for the camera here:
We have reached an understanding with Cricket. She is still allowed in the backyard when supervised. If she approaches the rabbit nest, we shoo her away from it. So far this seems to be working, although I don't think Cricket is very happy about it.
I am assuming that the mother rabbit won't be concerned about the scent of dogs in the backyard, seeing as that scent was all over the place before she decided to have her babies there in the first place.