So in this solution, you run the backend on a single node that reads/writes from an SQLite file, and that is the entire system?
Assuming you can accept 99% uptime (that's ~3 days a year being down), and if you were on a single cloud in 2025; that's basically last year.
We need not assume internet FB level scale for typical biz apps where one instance may support a few hundred users max. Or even few thousand. Over engineering under such assumptions is likely cost ineffective and may even increase surface area of risk. $0.02
Most will want to use a managed db, but for a real basic setup you can just run postgres or mysql on the same box. And running your own db on a separate VPS is not hard either.