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Wishing CLI could be usefully embedded
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And anyone is free to refactor it into a useful library. It is in the public domain, after all. Promoting anything into the core API brings a long term commitment to maintain it.

As for it being an "ugly kludge" that depends on what they're looking for. It is used to good effect to provide the sqlite interface for fossil so that maintenance tasks that might not be first class features in fossil are still possible. And thus it exists for SQLite: The shell is a place for "second class" features to exist that provide various types of utility but that either don't belong in the core API or are not yet ready for the core API. I don't know if any of the latter have ever come pass (something introduced to the shell and later promoted to first class status).