The hybrid's popularity is more sleeping space in a smaller, lighter trailer, AND more similar to traditional tent camping (i.e., the canvas, the sounds, etc.)
The hard-sided trailer's popularity is a greater "sense" of security (the hard walls make you feel more protected than canvas - although they aren't difficult to break into), minimal to no setup time required, more protection against outside elements (sounds, chance of leaks during rain, etc.).
Which one works best is a personal choice. With that, if your family has tent camped and enjoyed it, I would lean towards the hybrid. It allows you to have more sleeping space for the buddy camping.
If your family doesn't like tent camping (or has never done it), I would lean towards the hard-sided trailer and tell your buddies they can make the bunks work OR bring a tent or two.
Make the choice based on your family's needs first - buddies can make do or get their own trailer, but an unhappy family (especially while catering to buddies) will make you miserable.
Another thing to consider is the set-up requirements. If you're going to be using this to sight-see, then the hybrid can become a pain having to setup each night and then take down the next morning before you can move on. If you're going to be camping and staying in one spot for a weekend or longer, then the setup requirements on the hybrid become less of an issue.
