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The "cannibal" part is Played for Laughs, to show that Marcel's henchmen are absolutely terrified and disgusted of Nigel. Even without that, his Complete Monster status is rather solidified, as virtually none of his onscreen actions is free of malicious intent.
Cockatoos sometimes eat chicks and eggs of other bird species, so it is actually Shown Their Work.
He seems more brutal in the Angry Birds version, actually killing the birds for fun instead of just torturing them.
The mooks fail biology only because they CALL it cannibalism. Anybody that knew anything about cockatoos would know they're quite omnivorous (and that generally, birds eating other birds is as common as people eating cows). Nigel, of course, plays it up for all it's worth and uses it to torment the other birds his owner has captured.
He also has a Freudian Excuse, but it does absolutely NOTHING to justify anything he does. The fact it's only mentioned once was probably intentional on the part of the creators to make sure there was no sympathy at all for the guy.
Crowning Music of Awesome: DJ Dero's Batucada in the trailer is only the beginning (and is heavily sampled in the soundtrack). The first two minutes of the movie are set to a Brazilian samba.
Everybody Remembers the Stripper: An animated GIF of the beach ball bouncing off a lady's badonkadonk can be found around the net and for a lot of people it's the most memorable part of the movie.
Moral Event Horizon: For Nigel, it's likely forcing a small bird to pick a piece of bird meat out of his beak just so he can try to bite its leg off. And this is in his first speaking part!
Nightmare Fuel: Nigel...just Nigel. His Evilly Affable personality doesn't do a thing to hide what a truly nasty piece of work he is...particularly if you've attracted one of his many appetites.
Squick: Any scene where Luiz the bulldog drools on the main characters. Although he has stated it was a medical condition.
Unfortunate Implications: Blu and Jewel are the last of their kind, which means for their species to survive their kids will have to... Oh Crap...