Quinones don't have benzene-type resonance, they behave like the reactive dienones they are. But they form easily by removal of two electrons from the conjugate base of hydroquinone (or by removing two H's from neutral hydroquinone):
-O-C6H4-O- -2e- ---> O=C6H4=O
also HOC6H4OH -2[H] ---> O=C6H4=O
That is, by oxidation. Nitrous acid, present in a diazotization mixture, and diazonium ions themselves have oxidising power, and if any hydroquinone is formed in the reaction it will be rapidly oxidised to quinone.
Because diazotisation mixtures are acidic, any HS- present will be lost as H2S gas, leaving H20 as the predominent nucleophile. This will indeed yield hydroquinone, which then oxidises to quinone.
Another possibility is that no diazonium salt was formed at all, and that the p-phenylenediamine was directly oxidised to the quinonimine HN=C6H4=NH which then hydrolysed to quinone and ammonia (at once converted to ammonium ion in the acid medium, rendering the reaction irreversible).