NP-Hardness reduction
NP-hardness is usually defined using many-to-one reductions, for various reasons, for example to separate NP from coNP (there was some question about it either here or in cstheory). What you're describing is a specific case of more general Turing reductions, which is more common in classical recursion theory, and it is natural since it has the consequences you mention. Unfortunately, the definition of NP-hardness requires a many-to-one reduction.