I think so, yes. Since grappling with the hair doesn't give you the grappled condition you should be able to still grapple someone else using your hands.
I think you'll find it excessively difficult to do that, though.
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No, not really.
Since the witch has to burn a standard action to attack with the hair to activate it's grab ability it doesn't have the action left to perform a grapple with their hands.
Now in the corner case where it gets an aoo with the hair and grabs that way as soon as it's turn comes around it has to burn a standard action to maintain that grapple making it unable to do a normal grapple.
There's no way the standard WHW can grapple multiple targets.
actually, using the greater grapple feat you might be able to since you can maintain one grapple with a move action and now have your standard action free to work with.