Amazingly adaptable for their size and the threats to them, bilbies can live in sandstone ridges, gibber plains, rocky soils with little ground cover, a variety of grasslands, and acacia scrub.ilbies, also known as rabbit-eared bandicoots, are critically endangered. These marsupials used to cover two thirds of Australia, but now have been pushed back so that they o … nly live in deserts.