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The condensate water is laden with bacteria, mold spores, and pollution concentrated from the air. It can definitely be filtered and sterilized, but in water scarce environments you usually can't pull enough water from the air to be worth it.

Side-tangent, but this reminded me of the health nightmare that the incredibly common “kinetic mist” style humidifiers/vaporizers are.

I think there may be a general lack of understanding to how pollution and bacteria concentrate in our daily environments.

If it's for watering plants it works fine, if you want to store it and use it otherwise you need a filter and UV sterilization, many of these devices also mineralize the water for taste. The condensate will usually have a lot of mold and dust.

Condensate is not suitable for drinking and 99.9% of homes don’t have a separate gray water plumbing system or storage tank. Even the evaporator coil in the furnace/fan coil unit is going to be dirty, and the condenser coil outside is definitely filthy.