Production-grade data needs to be redundant across regions to outlive a disaster. I was glad to hear that SQLite replication exists, but it's an add-on (Litestream) that isn't strongly consistent nor multi-master.
For a SaaS product? Maybe - but even that's debatable. I imagine snapshots/backups stored off-site/in other regions are more than fine for the majority of SaaS businesses - certainly almost all businesses under a certain size. Sure you risk some minor data loss in a true disaster (like, meteor hits a datacenter disaster), but generally I think your odds are pretty good.
But that's just a subset of what databases are useful for. So much production data lives on-device with no replication or redundancy at all. It's still production-grade data.