There is a saying that if all you have is a hammer, then everything looks like a nail. Because my fishing is almost always livebaiting, I would take that little pest, put a livebait or circlehook on it and 'send it'. A bigger fish is the only thing that'll eat it. The problem of little fish will go away. But this suggestion is only because I see livebaiting opportunities everywhere I go, like a hammer looking for a nail.
And, yes, bigger snapper will eat smaller snapper.
The world's a better place after a paddle.