Primarily, it's a lot more convenient. There's no setup involved, you just click and and the data is available through SQL or C#. There's no need to clean the data around the tables, it works on live data (file does not need to be saved), no connection strings to set up or boilerplate code to write.

There's more, e.g. the SQLite engine can interact with Excel and fiddle with formatting, but I think the major thing is convenience. As a dev, most times I just wouldn't bother with the ODBC approach unless I really had to. Convenient C# and SQL though, I'd use them at least 10x more often.