edit: many thanks for all the answers. Here are the results after applying the optimisations so far:
As a text field, signature
is currently using at least 26 * 8 bytes per entry (208 bytes) but if you were to pack the data into a bitfield, you could probably get away with only 3 bits per letter (reducing your maximum frequency per letter to 7). That would mean you could pack the entire signature in 26 * 3 bits = 78 bits = 10 bytes. Even if you used 4 bits per letter (for a maximum frequency of 15 per letter) you would only use 104 bits (13 bytes).
EDIT: After a bit more thought, I think 4 bits per letter (instead of 3) would be a better idea because it would make the binary math easier.
EDIT2: Reading through the docs on SQLite data types, it seems that you might be able to just make the "signature" field span 26 columns of type INTEGER and SQLite will do the right thing and only use as many bits as required to store the value.
As a totally different approach, you could try using a bloom filter instead of a comprehensive database. Basically, a bloom filter consists of a bunch of hash functions, each of which is associated with a bitfield. For each legal word, each hash function is evaluated, and the corresponding bit in the corresponding bit field is set. Drawback is it's theoretically possible to get false positives, but those can be minimized/practically eliminated with enough hashes. Plus side is a huge space savings.
As mentioned elsewhere, lose the indexes on the boolean columns, they will almost certainly be slower (if used at all) than a table scan and are going to use space needlessly.
I'd consider applying a simple compression to the words, Huffman coding is pretty good for this sort of thing. Also, I'd look at the signatures: sort the columns in letter frequency order and don't bother storing trailing zeroes, which can be implied. I guess you could Huffman-encode those, too.
Always assuming your encoded strings don't upset SQLite, of course.
mhmm... an iPhone... doesn't it have a permanent data connection ? I think this is where a webapplication/webservice can jump in snugly. Move most of your business logic to the webserver (he's gonna have real SQL with FTS and looooots of memory) and fetch that info online to the client on the device.
The creator of SQLite sells a version of SQLite that includes database compression (and encryption). This would be perfect.