Well, if your refering to the main SQL plug-in, it allows access to
any ODBC system, ie mySQL, Access, Pervasive, SQL 2000, text, almost anything. In a game type environment, it could be used to store multiplayer hiscores, or perhaps the locations of all the players, what they're carrying and what they last ate.
The only problem with it (at the moment), is that the database needs to be present before you can use the plug-in. In addition, the relevant ODBC system needs to be installed (ie if your going to use Access, then for all clients, the ODBC Access system must be installed).
With SQLite, it is the complete SQL system (so nothing else is needed). It has a few less features that the main system (although it appears nothing particularly important). It should be easier to use, and you can create the database programatically.
The SQLite system has been started...