I bought a 2007 HiHy a few weeks back and it had 8400 miles..I just did a free tire rotation at a Goodyear dealer ( free with coupon )...He mentioned he filled in 35 psi on all 4 goodyear integrity 225/65R17 tires which is factory installed tires. Is 35 psi the max for a hybrid?

I dont have the manual handy...should be in there but I thought I will check?

Cars don't really have max pressures....tires do. Many hypermilers keep their tire at (or even above(I don't recomend)) max sidewall pressure which is written on the side of your tires. That is usually cold pressure, so you want to check it after the car sits a few hours. Pressures of 40/50psi are not uncommon and they can improve mileage by 10% or more.