busker said:
Since the responses so far agree that a 7th level party attacking a CR 7 pyrohydra is suicide, doesn't that suggest that the CR should be higher?
-busker
Not necessarily.
Does the party know that there's a pyrohydra - a fully-prepped party could easily kill it in a round or two. With the correct protection spells, they might not even take much damage.
Even if they don't know about it ahead of time, a party usually has an advantage against a single creature, even a powerful one, because they can concentrate attacks and oftentimes the bbeg only has to fail a save once. For example, in one campaign our party wizard took out a pyro- or cryo-hydra (can't remember which) with a single
phantasmal killer spell.
If the party monk or rogue can draw most of the breaths on himself, then evasion should help. Otherwise, a raging barbarian might be able to take several and still be standing. Just try not to give the hydra only one target (unless that target has some reason not to fear the breath weapon, such as evasion and good reflex saves, fire resistance/immunity, etc).
If, OTOH, the hydra attacks the party by surprise, opening with a breath from each head, well...

In that case, consider the encounter level to be a couple levels higher than the hydra's challenge rating and plan accordingly.