yeah, an electric appliance perked on a sink running water would be a fail in my book

I see no evidence that any attempt is being made to collect the water in the basin that the appliance could fall into. I do however notice that there is some upward tension on the cord of the heater, suggesting that even if it were dislodged it would not fall into the sink. A perfectly viable, and creative, solution if used with a modicum of common sense. Not that I ever expect to see this arrangement granted a UL Safety listing...

who made that polish water setup

The water is heated by electricity, so in order to use the hot water you need to stop the power.
Am i missing something?

I have lived in some rough conditions and would be glad to wash my dishes with hot running water rather than in a pot over a fire. Perhaps this set up is in a European or middle Eastern city that has been bombed and devastated, or is in a Katrina hurricane area. People do what they have to, to survive. This could be you or me someday. And isn't it time to end the racist "Polish" joke descriptor? (maybe not, if you're Polish, but otherwise, stop it!)

It's obviously a contraption from a prison cell. Very creative for obtaining hot water while in prison.