The following is proof of concept only - all the code should all be thrown away. The Silverlight applet only supports one statement at a time (this would be easy to fix). Applet code based on Simple C Program for Sqlite here. Database name hard-coded as "test.db". More information and download link on my blog.
Limitations - are many. Transactions do not work. No effort to check for quota, so you may run out of space. On the Mac, I initially got a blank applet in Safari. I updated Silverlight (try here), restarted Safari, and then it worked.