I'd like a demonstration of what's powerful about it.

Like, why would I want to take advantage of this, and how? I'm with you here. I don't get it. I can stick data into SQLite and do all kinds of neat stuff. Why am I preferring a mushy database trapped inside Obsidian?

Well everything comes in shades. Lets say you write meetingnprotocols of your meetings down with obsidian. The markdown/freeform and cross-linkable text body of obsidian is perfect for this. But you'd now be able to have a bit richer search over the notes based on who was present. This allows relatively normal people to do that, without having to dive too deep into databases plus it already lives in the app where you take the notes.

As someone who uses Sqlite for a ton of things I don't think the exietence of sqlite makes this useless.

This is obviously for people for whom notes are a primary knowledge storage mechanism, and for whom that mechanism is obsidian.

I “could” stick data in SQLite but if I’m not then it’s quite useless to me.