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It always puzzled me why Firebird didn't get more popular. It was a great little RMDBS.
Is it in some way worse than SQLite?
Do you mean better? Firebird allows multiple clients.
No, I wanted to know why it's used less often.
>It was a great little RMDBS.

Why "was"? Nowadays it's not?

An often forgotten piece of history about Firebird is that it demonstrated how Open Source (Free Software, etc.) makes products more secure and trustworthy.

Long story short: Interbase was a closed source DB by Borland that contained a backdoor which would give full access to all data to an external attacker. The backdoor went unnoticed for roughly 7 years, then one day Borland released the Interbase sources and just before the new management closed it again and ceased any contribution to the code, the community forked it on Sourceforge naming it Firebird. Within a few months since the code was made public, the 7 years old backdoor was identified and fixed.

https://nvd.nist.gov/vuln/detail/CVE-2001-0008