On the surface, this looks like the worst combined with the awful. I hope someone will make a good article with some hard numbers to explain the benefits and analyze the assumed flaws, because this could be something really, fascinating to learn about.
Can you explain why this looks like the "worst combined with the awful" to you? To me, on the surface, particularly assuming you are building a distributed system to be run and deployed by many users, some of which are not professional sysadmins (which I believe is likely to be a goal here, and should be), this seems like quite a sane choice. I'd definitely expect a design goal to be avoiding the need to setup/config…
Simplification of installation seems not like a good enough reason to trust your whole backend on this. Installing and maintaining a database-server is not that hard today. This is well established and documented, unlike this. But I also don't know enough about this app, maybe this is just one of several options, meant for a specific usecase? Using this in a standalone desktop-app would make sense, while still offering a mature sql-backend available for server-installations.