With that setup you have essentially lost any benefits that SQLite provides, specifically any performance benefits by making a DB read/write a network call instead of a local call in the same process that manipulates some file on the same machine. You are closer to a postgres/mysql patterne except now your writes don't scale as well. What are we actually gaining with this setup other than perhaps easier administration of the "db service" compared to a mysql/postgres deployment?

Obviously, you have not lost those benefits: reads are satisfied from an in-process database, and, for most applications, most requests are reads.