It seems this developer just blatantly ripped off the exact name Hipp was planning to use. He also ripped off some of the core SQLite code (the VFS, etc.), which is legal to do since SQLite is in the public domain, but still...
Not cool.
It would be good if you can make it clear on your website, somehow, that yours is an unaffiliated project. Otherwise, people might go complaining to me when they find bugs in your code. (Don't laugh - that sort of thing happens a lot.)
Other than that, you are welcomed to use the name.
You might want to have a look at the LSM storage engine that Dan Kennedy is working on for SQLite4. It is faster than the clunky and dated B-Tree used by SQLite3. It is also faster than LevelDB. And it supports nested transactions, with rollback. And concurrency. And it is more NAND-flash friendly. See http://www.sqlite.org/src4/timeline for the latest code.