"I can also ditch a database and just dump everything into a text file." <- This is what you're saying. It isn't hard to see the problem with this kind of thing.
Just because a technology works well for a few cases shouldn’t mean it’s the default. What’s the 80% solution is much more interesting IMO.
We have org-mode, application configs, and music playlists as three widely used examples for this.
You switch to a database when you need to query and update specific subsets of the data, and there's the whole concurrency things when you have multiple applications.