As I read those caveats, it's pretty-much just "do all of this and you'll be fine". I practice, developers do often skip some steps, and it still works in 99% of cases, until you hit that 1% and have data loss.
I'm not sure what the actual takeaway is. Software that don't require all the manual configuration steps to work properly is better, but it's not always feasible (in this case it's requirements for how the app uses SQLite, which cannot be controlled by Litestream directly). Or maybe Litestream should fail with hard errors if it detects issues in the config (not sure if it's all possible to detect). Or maybe we need to have higher expectations of developers reading the docs properly?
How would you write it? It's not like the Governor "didn't not not" do something. Veto, ban, noncompete all have negative connotations but they are very different concepts so don't just cancel each other out like multiple negatives normally would.