Water in the atmosphere is a near infinite resource. It stays up on average only 8-10 days, being continuously regenerated by the sun. I don’t mean to be dismissive, but the amount of water in the atmosphere dwarfs currently used freshwater sources by orders of magnitude. And unlike other methods, it doesn’t produce wastestreams, which can be ecologically damaging especially if said wastewater is salty and far from an ocean.

When we pump in dirty water for things besides drinking, it’s called greywater reuse, and is actually far more widespread than AWH.

The real concerns for AWH are around its energy intensity, which is many times that of conventional sources- as a result it’s likely not economically viable for use beyond ultra pure water. And if it’s not powered by renewables it may not be sustainable. And renewable power is still resource intensive to create. You are right to criticize it, but you focused on the wrong issue!

Sources: https://hess.copernicus.org/articles/21/779/2017/hess-21-779-2017.html https://greywateraction.org/greywater-reuse/