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Compiling sqlite3 with readline support
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I don't use that Mac enough to care which readline version it got. With the latest version MacPorts has, (8.x), this grab/build sequence incorporates it:<code>
  sudo port install readline
  ./configure --oldincludedir=/opt/local/include/ --enable-readline
  make sqlite3 LDFLAGS=-L/opt/local/lib
</code>. I can see from the compile and link flags that readline is being used, and the line editing behavior is close enough to the readline I learned (many years ago) that I'm pretty sure it is readline doing the line input.

If that does not work for you, I suppose it is time to start looking at what configure says about readline presence and what commands issue from "make -n sqlite3 LDFLAGS=-L/opt/local/lib".