CJan, first let me express best wishes for your friend's wife and I am grateful they have someone such as yourself who has taken an interest in helping them.
During the H1N5 or whatever issue way back in 2006, I found a used Devilbiss O2 concentrater on ebay that lookes very similar to the one in your link.
It worked fine [they are actually used as an O2 source for folks working with jewerly and having to do fine brazing, etc].
One of my reasons for wanting one was to recover the N2 from the 'backend' so to speak, for flooding food prep containers with nitrogen. They will work for this and have significant capacity. I've posted this info here before [to no interest
]
I took mine apart to study it and it does have quite a bit of electronics, there is a micro-controller and various fans, one compressor, solenoid valves, etc.
Getting to your question of sine vs a standard generator, I see no reason why not.
Here's a pix from Honda of the waveform of an EB3000c generator. I'm guessing that's the one your friend bought.
That waveform is way better than a modified sq wave inverter, approaching a true sine wave, and I see no reason the concentrator wouldn't operate correctly with it based on examination of the used one.