I assume that's just a combination of a sterilizing agent, probably iodine, and a flucculant to settle particles. You could get the same effect with any of the iodine water treatments and some alum. There are a bunch of things that will act as flocculants though, so a google search might turn up even better ones than alum.
Probably get them cheaper at a pool supply store too.
Problem being that the disinfectant shouldn't be added until after filtering. Wasting disinfectant on dirty water means much of it is used in stuff that is in the floc. And you really need to filter to get clean water. It's just not possible to get clean water without filtering.
Remember it's a process. There are multiple steps involved in water treatment with taking raw water and making it potable.
Here's a link providing the basic steps in a clear format;
http://en.wikipedia.org/wiki/Water_purification
Here's also a list of most items that can be used a s a coagulant to form floc.
http://en.wikipedia.org/wiki/Flocculation
Without the filtration step you'll still be drinking 3rd world water quality. And a piece of cloth won't cut it for getting much that's in the water.The statement make in the video about these making water clear, clean and puified is a bold faced lie.
It might make it somewhat better, and maybe disinfected, but it will
not make it purified, or clean or clear, just cleaner. Best you could hope for wouldn't be much different then just getting water from a 'clear' stream and adding some disinfectant. It would never come close to what our government requires potable water to be. Without a good filter you can't get anywhere close to our current standards.
You could drink it, using their methods, but it would still be full of all sorts of stuff. No coagulant gets everything to settle out. I see plenty on the floc still making it to our sand filters after hours of settling. It does make the sand filters work better, but you can't skip this step.