My best guess would be that the condum first found its way into military survival kits. Mainly the very compact kits on ejection seats and in parachute harnesses. They are sterile, packed to last and the material has good strength and stretch.
However, for my kits, there are no condums. I prefer light purpose made water bags to compliment my water bottles and/or Camelbak bladder.
At some point you have to ask yourself, "do I really see a need for this item". I put button compasses in that category too. They were originally an item for E&E kits for aircrew shot down in enemy territory. If capture was close, you could swallow the compass for later retrieval for use during an escape. Yep, you would want to wash it first...
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No, I am not Bear Grylls, but I stayed at a Holiday Inn Express last night and Bear was there too!