You got it. Yeah, Ben built LiteFS a year or two ago, which is why he designed LTX. But using LiteFS required people to set up FUSE filesystems, which was too complicated for a lot of people, so Litestream got way more uptake. This past year he's been harvesting all the good stuff from LiteFS that doesn't require FUSE and building it into Litestream.
The easiest way so far to understand the split between Litestream and LiteFS: Litestream is an operational tool, for backup and restore. LiteFS is a method for doing online leader/follower replica clusters.