Well a bite is a bite.. Can Mr.Biggles see okay? And any chance the pillow scared him before hand or so much bigger than he is, he didnt see you coming and felt trapped?
I would get a behaviorist. I am afraid over the internet, aggression is not something that should be solved here. We can not know all things- but this is odd. Does Mr.Biggles know to give something back, and did you say this "cue word" as you took the pillow.. Also- did Mr. Biggles think he was in trouble for the pillow, and when you grabbed him, out of defense bit you?
Please get a behaviorist- or trainer- but meanwhile put those thoughts in your mind as they will need to know the whole story and exactly what happened.
I don't understand why he felt trapped, cause hes removed from his crate many times a day.

If I let a behavourist deal with Mr. Biggles bitting, Chad will have him PTS for bitting. I don't want Mr. Biggles PTS, but I don't want him bitting either. I'm so stuck

Mr. Biggles eyes look really good & he can follow a tiny spot of light all over the place while chasing it (the only toy he likes).

Hmm, so he bit your arm or hand, but did not brake the skin? As if he was saying, "hey, no get outta my way, I'm not stopping here with this insane pillow which has taken on a life of its own!" Did he just leave "dents," teeth indentations? Or did he break the skin but it didn't bleed? Like a scrape.
He bit the meat inbetween my thumb & index finger. His whole mouth was on my hand, so it was a bite not a nip. He bit down hard & I pulled my hand out of his mouth.. I don't know if he would have bitten again, but I moved really fast & had him in his crate before he knew the door was even closed. It wasn't like he was standing his ground & I put my hand towards him... he was rushing out & I had my hand out to stop him.

His jaw is pretty screwed up, so I don't think he can physically bite hard.