I love SQLite, but people approach it from a classic RDBMS angle which confuses them.
Here's the deal: SQLite is a file format with a nice API that uses SQL as the paradigm for reading/writing to the file.
That's it. Stop overthinking it.
Can you write a microservice that stores its data in a big JSON file that you've built some code around to read/write to? Yes. It's just a file, but you have to build all the read/write methods. SQLite is not really any different, except the read/write work is already done, and you use SQL to format the data values and encode the read/write logic instead of the language you are working in.
The file format has some cool extensions like text indexing, geospatial, etc. But it's no more a RDBMS than reading and writing a JSON file is.
"But there's indexes!" Yes, just liked you might build an index on your JSON file and read that before reading the JSON file to know where things are faster -- and then you have to write all the code to do that. SQLite is just a file format, where you can also build indexes and all the code for that is already done for you.
It's just a file format with an API that's similar to the ones you'd use for any regular old RDBMS and uses SQL as the domain language to read/write data.
It's just a file format. Anything you can do/can't do with a file format you do with SQLite.
It's just a file format. A nice convenient one that you are probably better off using than most other things for most purposes.
It's just a file format.
edit
I'm glad this comment is getting such a response. I'm not trying to be mean, just help clarify thinking.
Here's two thought experiments:
1) If SQLite didn't require you to use SQL as the read/write logic and was called "datalite", and instead just forced you to use C function calls, exactly like you would if you were working with literally any other file format on the planet, would you still be confused as to what it is?
2) Do you consider reading and writing to any other file format anywhere in the hierarchy of RDBMSs? Consider Python's csv module. Is that an RDBMS? Let's move away from tabular data, how about python-docx?