....if the Phatbox/Keg actually uses SQLLite, or is it just the PMM software that does?
From what I've seen of the PBX files, I would hazard a guess and say that it simply uses the profiles.ini file to read the num playlists, and the uses the associated default profile directory to then read the M3U's containing the playlists.
I believe that is how the phatbox / keg works in playlist mode, but with SSA turned on there are the artist / genere / album modes that do not come out of directories, they are database based I believe.