I suppose it would be OK if they only wanted to measure expired gases...EtCO2 perhaps? If they expect to measure/view inspired gas levels as well, then I agree with you that it can't work!
I wonder if they've had any problems with too much condensate blocking up the gas analyser, so tried to put the sample tube in a different place in the circuit. Some water traps in analysers work better than others in my experience...just a wild guess though!