If you used Omegle for more than 30 seconds, you'd know it was filled with sexual predators exposing themselves to children. I'm surprised it lasted this long. I'm sympathetic to the creator, I don't think tools should be banned because there are bad users, but Omegle's user base has its reputation for a reason.
Children actually were not allowed to use the site. By that logic you could say the same thing about every single porn site.
Children 13+ were formally allowed to use the site with parental permission until after the lawsuit at issue was filed, but even that restriction was just, I think, a pro-forma fine print footer notice to provide CYA against COPPA requirements on sites that were directed at kids under 13.