Just wanted to confirm, is that FLIR integrated into the pylon itself,
Yes it is integrated into the pylon itself.
which can still have ordnance mounted on it?
Usually those sort of pylons are used to carry a pod below it, usually a targeting pod or navigation pod, but in J-16s case we've also seen a datalink pod carried there.
They generally aren't used for ordnance, though I'm not sure if the J-16s FLIR pylon can do so.
If so, it’s a great concept (but maybe I’ve just not informed), does anyone know if this is done elsewhere?
Yes, this is very common for targeting pods to have their pylon have an inbuilt FLIR to assist in navigation, and goes back many decades.
I made this some time ago, not exhaustive of course: