I decided that the inflatable collar will prevent Tanaka from pulling the needles out when he goes for acupuncture and it did. Dr O then decided to put 2 more needles on the corner of how eyes which are bladder points and to both our surprise, he was very calm about that. He allowed the doctor to manipulate the needles slowly and did not try to bat at him. The only thing he would not allow are needles on his head.
Dr O told me that he does have other cats who would try to pull out their needles as well. He took some pictures of Tanaka and told me that this was not something he had thought of and it would be helpful for others as well. I hope it would help the other cat parents.
Tanaka remained very calm throughout the whole process and he listened attentively to our discussion of Buddhist chants that was playing on the radio. He fell asleep once or twice listening to it. :)