Please be aware that that water can contain a lot of particles out of the clothes. It's better with a heat pump dryer as that has a better air filter to protect the condenser.
Also I recently fought some smell in my dryer by first spraying some diluted isopropyl on the condenser and then letting it dry out completely before closing up the maintenance hatch again.
I do believe bacteria can grow in the humid part where condensate is being collected - for a heat pump dryer even more so due to being warm but not hot.
When my daughter washes she's using fabric softener when washing - and I can smell that in the water collector after she uses the dryer. So the softeners perfume definitely is in the condensate.
But yes, I use it for plants, too. But (due to the particles) never in the clothes iron.