A cotton bandanna is all I carry. It doubles as a pre-filter, something I don't think I'd do with a towel. It's more flame-retardant than a synthetic pack towel if you use it as a pot holder, which I used to do back when I carried a stove. As for wiping tent condensation, sometimes I'll do that and use the distilled water for a quick sponge bath. I've had some dewy desert mornings when that's pretty welcome.