It would be stored in a special armoured part of your bag to keep its squishy body safe.
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While we're at it, give us a portable mog house moogle, base it off the glitchy mog house moogle in Lower Jeuno that randomly appears near the Auction House some times. I clicked it once, could change my job, open safe and locker, and check my delivery box in the middle of town, I didn't actually change jobs, but still.
I did think of the moogles. I would have tossed a juice pack into my baggy for them to sip on. What good is a mog sack if you can't shove a moogle in it?
We used to keep a tinker gnome in a bag of holding with a straw so he could beath.
I would very much love to see Moogle Knights in FFXI. Everybody knows they had the most awesome in the FFTA series. X3