SQlite will not be suitable for blockchain projects, because there are some features lacking in my SQlite also it has a data limit, so it will not serve for big projects where millions of records will be hold for a very long time, SQlite is suitable for mobile development. No-SQL will be best fit for blockchain projects.
Well, that has to be decided by the particular project. I see that Byteball is using SQLite and it is one of the projects that is allowing actively use oracles and recently announced a cooperation with Steemit. Over one million Steemit users could now pay Bytes with their Steemit username that should cause a lot of transactions on Byteball's site that however use a SQLlite database for the DAG. We will see if it works. Nevertheless, I am looking for futher projects using SQLite.