I love my red hooks. They are skittish like you said, but they take comfort in the large, tunnel like driftwood I have in the tank. I have no real plants in the tank, but have floating plastic plants that help keep the tank dark. They usually just hide behind and under the decoration until it's "safe" again.
Thankfully, they have never harmed themselves trying to flee. And after a few seconds, they come back out from hiding.
I feed mine a huge variety of foods, and while I have seen them ingest small fish they seem to enjoy Hikari's floating cichlid pellets the most. They go up and crunch them to bits. So much so that the pike cichlid in the tank will wait for them to start crunching and then it starts collecting the broken pieces.