It is now possible to embed an image of a floppy into a CBFS flash file and then boot from that image with SeaBIOS.
I've used this to boot FreeDOS directly from flash on my epia-cn. An lzma compressed bootable FreeDOS floppy uses about 95K (for the base kernel and command interpreter).
More information is available on the Coreboot SeaBIOS page:
http://www.coreboot.org/SeaBIOS#Adding_a_floppy_image
Cheers, -Kevin