It is certainly a higher performance solution in the fair comparison of a hermetically sealed VM using SQLite vs application server + Postgres instance + Ethernet cable. We're talking 3-4 orders of magnitude difference in latency. It's not even a contest.
There are also a lot of resilience strategies for SQLite that work so much better. For instance, you can just snapshot your VM in AWS every x minutes. This doesn't work for some businesses, but you can also use one of the log replication libraries (perhaps in combination with snapshots). If snapshots work for your business, it's the most trivial thing imaginable to configure and use. Hosted SQL solutions will never come close to this level of simplicity.
I personally got 4 banks to agree to the snapshot model with SQLite for a frontline application. Losing 15 minutes of state was not a big deal given that we've still not had any outages related to SQLite in the 8+ years we've been using it in prod.