Against my better judgment I'll throw my 2 cents into this debate. I am on the side of the debate which says" It does work," because it does! I would not suggest it be used exclusively in a high end automotive paint shop or that it is an equivalent to an refrigerated dryer or desiccant dryer but for the home hobbyist, it is the most economical set up you will find.
I too made a "franzinator" long before I even knew there was something called a "franzinator." I used to build Koi ponds and custom pond filters and aerators for my customers many years ago. The way you build an aerator is to build a venturi air jet, similar to a carburetor jet, within your water line. Anyhow, knowing what I know about a venturi construction and the basic principal about how they work with compressed air, I built myself this dryer. It is connected to my compressor pump on the left side and the tank on the right. It has 3 legs that I designed to pull the water out of suspension and into the drip drains below. The fourth leg is a (discontinued) desiccant dryer I picked up at horrible freight. Here is an old picture from when I was building it:
Basically this is my theory of how it works: If you take compressed air within a small diameter tube and run through progressively smaller diameter air lines and then an even smaller venturi then out into a large diameter tube you will instantly create a cold spot (relatively speaking). If you direct your jet of air toward the wall of the larger diameter pipe any of the water pulled out of suspension from the recent chilling will slap against the wall and drip down before it has a chance to get pulled back into suspension. Here is a graphic of my lousy explanation:
I know this works simply by the volume of water that I get out of each drip leg. More in the first , less in the last, and none below the desiccant dryer. I also put an automatic drain on my compressor tank but it never spits any water out.
So how much do I use my compressor and for what purpose? I am just a hobbies in my shop and might use it for nail guns, tin shearing, auto work, and the occasional painting. So not much compared to many of you. I cannot find a picture of my current set up but here is the compressor fresh after I rebuilt it last winter:
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I can see that making a system out of iron pipe would be cheaper and the pipe would probably dissipate heat quicker but I made mine out of copper because I had it on hand, it won't rust, and there are less threads to leak. I would have used even larger diameter pipe but I didn't have anything on hand and I didn't want to spend too much money.
-Tim