Nope, that's not a typo. 16MB of flash is the correct amount.
In embedded hardware it's quite common to have RAM larger than flash storage. This in in contrast with what we are typically used to in personal computers and smartphones because they are designed to run media-heavy applications and therefore needs the extra storage for video or images. For most embedded hardware applications, the 16MB of flash on the Omega is more than adequate. However if you do find yourself needing extra storage (i.e. to store the video captured from an IP camera), you can always plugin additional USB storage devices through the USB port.