You create a JSON (for example) for all your users when you need to store it. But in memory, it's just a collection of User objects - or whatever is idiomatic for your PL. And you query it with the same tools your language offers - e.g. sequence comprehensions. So there's no impedance mismatch, and no need for the vastly more complicated code that is needed to bridge it. Even if it's not your code - i.e. if you're using an ORM or something similar - it's still unneeded complexity, if you don't have too many users.
Think of it from the opposite perspective - if you can work directly with in-memory data, why would you prefer to run SQL queries instead? The latter is obviously more complex, but what's the advantage? There are many valid cases that have a good answer to that question, but there are many more that don't.
I can't help but think that we're conditioned to use DBMS (SQL or not) largely by inertia. When we learn about them, the examples are necessarily toy ones - tables with a dozen of records, that sort of thing. But one side effect is that it subtly normalizes the notion that this much data warrants a dedicated DBMS - so people don't balk at even patently ridiculous setups, like a separate SQL server used to hold a grand total of a couple thousand records in all its tables (this is a real thing, something that I personally did in a LOB app many years ago; I didn't have a good justification, it was pure cargo cult, and the app could have done everything it did in-memory, faster, and easier to code).
And sometimes, when you ask, people say, "yeah, it's only 1000 records now, but we're going to grow later, and then we'll need a DBMS". But you'd need to grow by many orders of magnitude to get there - and if you get that opportunity, you'll also have the resources to adapt. But everybody dreams of being Google.
And then you have apps like, say, a todo list manager app. Is it ever going to deal with millions of todo records? I don't think so. Then why does it need an SQLite DB?