1. People gaining newfound appreciation of having the database on the same machine as the web server itself. The latency gains can be substantial and obviously there are some small cost savings too as you don't need a separate database server anymore. This does obviously limit you to a single web server, but single machines can have tons of cores and serve tens of thousands of requests per second, so that is not as limiting as you'd think.

2. Tools like litestream will continuously back up all writes to object storage, so that one web server having a hardware failure is not a problem as long as your SLA allow downtimes of a few minutes every few years. (and let's be real, most small companies for which this would be a good architecture don't have any SLA at all)

3. SQLite has concurrent writes now, so it's gotten much more performant in situations with multiple users at the same time.

So for specific use cases it can be a nice setup because you don't feel the downsides (yet) but you do get better latency and simpler architecture. That said, there's a reason the standard became the standard, so unless you have a very specific reason to choose this I'd recommend the "normal" multitier architectures in like 99% of cases.