ssbbs,
>From SQLite FAQ, "Multiple processes can have the same database open at the same time. Multiple processes can be doing a SELECT at the same time. But only one process can be making changes to the database at any moment in time, however."
>Wouldn't this spell trouble for multi-user apps?
It is an issue, but it doesn't mean that it can't be used for a multiuser app. It does lock the entire database to make updates (more like makes it readonly). So, two users cannot make updates at exactly the same time, but this only takes a split second. For small numbers of users this may not be an issue at all.
So for smaller numbers of users it provides many advantages, some of which are (as you already mentioned) that all the data resides in one file and there is no separate setup or maintenance required. This makes it good for off-the-self applications for small companies that don't have full-time IT people.
You can use standard SQL syntax. And now that it supports numeric and blobs it looks even more interesting.
And the price is right! Free and royalty-free.
James