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Honestly, does it matter to a regular user?
There will be some that do matter, if I were to run NC I would use Lite because why throw the data to another process just to write it to a disk when I only have a single node.
Well it does depend on your exact use case, but using a proper database is usually the better option for production. Now if this is just some little service you made for yourself use whatever you want.
SQLite is a proper database. Realistically you’ll never exhaust its 278tb storage limits, it’s thoroughly battle tested, and it’s dead easy to backup.
I doubt nextcloud is running enough parallel db writes for this to actually matter — and if it is WAL mode is still probably good enough.
Once you have multiple software clients running then you will need a client server dbms like Postgres. For most home or group installations, this should not be an issue.