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SQLLite the right choice for storing web game data for many users
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I think your separate DBs plan makes sense from a data management perspective. Yet, before I would subscribe to it, I would want to know:

1. Is the number of simultaneously active players low or high?

2. Are their privacy issues that must be considered?

3. Will there be player interactions such that queries involving more than one user will be convenient? (Building queries can be tedious, to be avoided if SQL can express the same thing.)

4. Is there some user aging/purging scheme to deal with the "ever-growing, never shrinking dataset" issue?

From your thought to use SQL server for account info and SQLite DBs for user game state, it appears the server DBMS need not be involved in game play, only at logon for each active user. It is unclear whether multiple game state DBs need to be ATTACHED in the same SQLite session or if per-active-user sessions can be used. (relates to Q.3)

> ... would mean that each user wouldn't be lagged by the others ...

I would be careful about just assuming that to be the case. A famous computer scientist taught that "[premature optimization of the root of \[most\] evil](https://stackify.com/premature-optimization-evil/#:~:text=%E2%80%9CPremature%20optimization%20is%20the%20root%20of%20all%20evil%E2%80%9D,from%20his%20book%20The%20Art%20of%20Computer%20Programming:)". I would be remiss to go along with your assumption if that's all it is.