From the readme:
> LevelDB is a fast key-value storage library written at Google that provides an ordered mapping from string keys to string values.
it's a completely different thing from sqlite. sqlite is a relational database (which can also do key-value storing, I guess).
my educated guess is that google started with sqlite, then reached the peak usefulness *within chrome* and only then switched to developing its own custom solution.
if anything, this is a testament to sqlite and how far you can go with it before needing a custom solution.