SQLite can by principle not suffer from a RCE.
Start with the 2018 nominations but feel free to check the archives. Drive-by browser vulnerabilities are RCEs.
I would never argue they aren't, but by this logic ("it's like saying PDF or JPEG parsers can't be vulnerable to RCE") virtually every code execution vuln in a library can be called RCE. I haven't noticed this to be the case with e.g. libtiff vulnerabilities (of which many make it into my inbox regularly), although image libraries are one of the cases were CE = RCE is still fairly reasonable.
Let's assume this SQLite bug is only exploitable if you can input arbitrary SQL. Almost no applications use it this way (except Chrome). I think it's clearly unreasonable to call it a RCE in SQLite then.
Should we fix bugs? Yes. Should we scream at people that expose raw APIs they don't understand far beyond their design constraints? Yes yes yes.
In practice, however, the community gets more bang for their buck if they label the SQLite code execution vulnerability as an RCE since the vast majority of use is in a networked setting. You have to remember the audience used for these terms. They aren’t scientists in the traditional sense where taxonomy is highly aligned the ontology — instead, the labeling serves the operators with metaphors that depart from reality insofaras they increase security engineers ability to do their job effectively.
(This is still a serious security vulnerability)
You may not notice that you do when apps use sqlite as their file format:
e.g. SQLite has an ACE. Chrome has a RCE (which is SQLite's fault).
I sort of intellectually in the back of my head know that "arbitrary code execution" is a term that has been coined and used in the past, but I don't offhand know of anyone that uses it (among other things, it's kind of redundant). "Local only" code execution vulnerabilities aren't "LCE", but rather (usually) "privilege escalation".
Say for some reason someone used an exploitable version of SQLite in a program that had the setuid bit set. You wouldn't say SQLite had a privilege escalation vulnerability, would you?
Usage example: "I got code execution!"
I think a better way of looking at it is that it's an ACE Vulnerability in the e.g. JPEG parser that causes an RCE in the Online Service.
Or, in this case, an ACE vulnerability in SQLite that causes an RCE in Chromium.
Since SQLite in and of itself is just a library, it doesn't have that problem. You have to expose it to untrusted inputs manually somehow (e.g. by setting up a socket).