It is exceptionally great if you don't need parallel writes or have many terabytes of data - ie: for most services out there.
When embedding natively, like in a Rust app, the performance is better than any other RDBMs because no network/serialization overhead and being able to use pointers in-process if needed.
The DevOps story also is a dream: typically it is just a single file (optionally + some more for journaling) and setup is automated away (most language libs bundle it already), plus it is widely known since smartphone SDKs and all webbrowsers include/expose it.
A subtile advantage: the supported SQL subset is so small, that "if it works in sqlite, it will also work with $RDBMS" in most cases, but not the other way around. I always use it when getting started when in need of relational data, and only had to swap it out for postgres once, but not due to technical/scaling reasons (IT policy change & stuff).
Having said that, it is mind-boggling what kind of load you can handle with a small VPS that runs a Rust microservice that embeds it's own SQLite natively... that would be an expensive cluster of your typical rails/django servers and still have worse performance.