You dont need an “internal Hydro unit” if you use a monoblock system.
You can have aluminium radiators that are half the size of over sized ones.
Hot water is just about hot enough? Most units will get to 50c for hot water and a legionella purge one a week to get it to 60c although this can be set every day. Plus there’s high temp units that dont require over sized radiators and can get hot water to 60c
Most heat pumps will work effectivley down to around -8c with some big improvements coming in later this year and in the next few years moving on to different refridgerants.