I think that's very fair. But the use case for Litestream is much simpler and you can get your head around it immediately. It also doesn't ask you to do anything that would commit you to SQLite rather than switching to Postgres later. It's just a way of very easily getting a prod caliber backend up for an app without needing a database server.
It's definitely really nice though that if you do choose sqlite initially to keep things as small and simple as possible, you don't immediately need to switch databases if you want to scale.