/rom is a squashed filesystem of system files that generally never change. It is always 100% full and never changes without re-flashing the whole OS. The remainder of the flash space is formatted as /overlay. This is where files added or changed during runtime are stored.
What package(s) were you trying to install. You have 56MB of free space on the overlay -- that should be enough for many different packages to be installed, but it obviously depends on what it is.