Agreed. Rather than have huggable allow the panda auto-success on grapple checks, how about...
Huggable (Ex): A creature making an opposed grapple check with a panda of ill omen must succeed on a DC X Will save or automatically fail the check, choosing instead to welcome the embrace of the fluffy, cuddly creature. This is a mind-affecting, compulsion effect. The save DC is Charisma-based.