On sparse complete sets and P vs L
Yes, exactly what you suggested is true: if there is a sparse $\mathbf{P}$-complete set under log-space many-one reductions, then $\mathbf{P} = \mathbf{L}$. This was conjectured by Hartmanis in 1978 and proven by Cai and Sivakumar in 1995. See this paper.

Hartmanis also conjectured that if there is a sparse $\mathbf{NL}$-complete set under log-space many-one reductions, then $\mathbf{NL} = \mathbf{L}$. This was also proven by Cai and Sivakumar in 1997; see this other paper.