For public-sector data preservation, it may be one of the best options.

The specification is publicly available

- It is widely adopted - It is likely to remain readable in the future - It has little dependency on specific operating systems or services - It carries low patent risk

From the perspective of long-term continuity, avoiding dependence on any particular company or service is extremely important.

Archivists also love formats close to native. SQLite lets the relational relationships be present in a way that csv cannot.