Why log-space reduction is used for NL-completeness while PSPACE reduction isn't used for PSPACE completeness?
Your reduction $f$ works in nondeterministic logspace, which is conjectured to be stronger than logspace. Assuming this conjecture, it follows that the concept of NL-completeness is not trivial, that is, not all problems in NL are NL-complete; in particular, problems in L are not NL-complete.

What might be confusing you is that PSPACE=NPSPACE, which is proved using Savitch's theorem. In the context of logarithmic space, the theorem only shows that problems in NL can be decided in space $O(\log^2 n)$.