Yes, that's exactly the point they're making. A lot of people get pneumonia, it's a very common cause of death, we see it on very many death certificates. And, even though it's so common, we still see very many more (between 4x and 32x) deaths caused by covid.
The other reason they're combining flu and pneumonia is because that's in the method that Public Health England used / Health Security Agency use for flu surveillance: https://webarchive.nationalarchives.gov.uk/ukgwa/20140714084...