That size of dog kennel is certainly better than most cages sold for rabbits. It does look a bit crowded in there, though. A heavy crockery water bowl would take up less space than the water dispenser that you have. Since you have a house in there, you might want to take out the cardboard tube, as it seems to take up a lot of space. That litter box looks large, but it’s hard to gauge the size. A litter box has to be of an adequate size to fit your rabbit, but it doesn’t have to be oversized.

It’s good that your bunny will get at least 8 hours of out of cage time each day. To give the bunny more room, you could attach an x-pen to the dog crate. You need to make sure that it’s high enough so that the bunny can’t jump out

A rabbit can certainly jump up on top of the house and probably will. The danger with having a bowl up there would be that the bunny might jump into it accidentally and get wet and spill it, and the bunny may be able to push it off the house, which would certainly make a big mess and leave the bunny with no water.

You can have that cardboard tube out on the floor for your bunny to enjoy and run through, during out of cage play and exercise time.

I wouldn’t put a water bowl in top of the house. It’s best on the ground. You definitely need a pen attached for when he/she isn’t out having floor time.

In regards to keeping fleece out — If the bare flooring isn’t rough (to cause sore hocks), than having it bare would help litter training a bit, since they won’t be tempted to pee on it.