I have a dehumidifier that probably has a similar schematic, and produces water by drying out the air. There is a warning not to use the water for drinking, and without specific reason. But I can imagine without normal hardness and other chemicals, drinking something like distilled water could upset the normal chemistry and electrolytes of humans or pets. It still might be used to water plants growing in soil in an emergency. But if one is basically hallucinating or near death from lack of water (ie, a real emergency), I probably would drink it and take my chances.
AWG, an Atmospheric Water Generator, is a device that extracts atmospheric water from the air. Using the condensation-cooling method, the water vapor in the air can be extracted by pressurizing the air, divulging the air to desiccants, or cooling the air below its condensation point.