Thank goodness all the cars on the road don't puke out oil like that, we wouldn't be able to breathe
These new fangled PCV systems are new technology, cars have only had them since the mid 60's
Do these systems sometimes fail when they get old, sure, but I don't think that means they should all be removed...
I wrote in an earlier post that oil from a "properly designed" AOS which operates at warm temperature, will collect only the atomized liquid oil droplets and let the water and fuel vapor pass right thru with the air flow. For water to condense out, it has to have a cool surface. The oil, which is not contaminated with water or fuel can flow back to the oil pan. Many cars do it, no problem...
Your down tube with bottle is not the same thing. The bottle is cool, so of course water and fuel vapors will condense out and contaminate the oil. I would not re-use that oil either!