I would argue it is not resilient enough for a web app.
No one wrote the rules in stone, but I assume server side you want the host to manage data recovery and availability. Client side it is the laptop owners problem. On a laptop, availability is almost entirely correlated with "has power source" and "works" and data recovery "made a backup somehow".
So I think we are both right?
I don't see how this has worse effects on recovery and availability. The data is still in a separate file, that you can backup and the modification still happens through a database layer which handles atomic transactions and file system interaction. The availability is also not worse, unless you would have hot code reloading without SQLite, which seems like an orthogonal issue.
Why?
Because in 1999 when I started using PHP3 to write websites, I couldn't get MySQL to work properly and Postgres was harder but had better documentation.
It's ridiculous spinning up something as "industrial strength" as Postgres for a daft wee blog, just as ridiculous as using a 500bhp Scania V8 for your lawnmower.
Now if you'll excuse me, I have to go and spend ten seconds cutting my lawn.
The tooling in a lot of languages and frameworks expects you to use an ORM, so a lot of the time you will have to put up a fair bit of upfront effort to just use Raw SQL (especially in .NET land).
On top of that ORM makes a lot of things that are super tedious like mapping to models extremely easy. The performance gains of writing SQL is very minor if the ORM is good.
I've built pretty scalable things using nothing but Python, Celery and Postgres (that usually started as asyncio queues and sqlite).