Here are the notes I made at the time: https://simonwillison.net/2020/Jul/30/fun-binary-data-and-sq...
I built https://datasette.io/plugins/datasette-media as a plugin for serving static files from SQLite via Datasette and it works fine, but honestly I've not used it much since I built it.
A related concept is using SQLite to serve map tiles - this plugin https://datasette.io/plugins/datasette-tiles does that, using the MBTiles format which it turns out is a SQLite database full of PNGs.
If you want to experiment with SQLite to serve files you may find my "sqlite-utils insert-files" CLI tool useful for bootstrapping the database: https://sqlite-utils.datasette.io/en/stable/cli.html#inserti...