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1) It is not a requirement to host the database and OMS on dedicated servers, but it is desirable.
- reduces resource contention
- can simplify maintenance
2) 500 targets is not a stretch for 12c -- this would be a medium-sized site.
See Enterprise Manager Cloud Control Advanced Installation and Configuration Guide 12c Release 2 (220.127.116.11):
+11: Sizing Your Enterprise Manager Deployment+ especially +18.104.22.168 Repository Tablespace Sizing+