The Combat Reflexes line refers to how a hydra gets a total number of AoOs per round equal to its number of heads, instead of the normal 1+dex bonus, so a 12 headed hydra can make up to 12 AoOs per round instead of the normal 2 it would be limited to with its 12 dex. And the line, "Hydras can attack with all of their heads at no penalty, even if they move or charge during the round", means they get a full attack on an attack or charge action. If some effect gives a hydra a bonus attack, it is still just one extra attack allowed. Now, if the hydra was surrounded by several enemies, it could, with your setup, make bite attacks against each, get a free trip, and if the trip is successful, get a free follow up attack against each. So it is still a great build for crowd control.