Could my wifes rash on her face have anything to do with me washing my 'man parts' with her louffa face pad?

I'm sure it is just a coincidence. I mean you're a guy, right? So that means you probably rub your junk all over her body and face while she's sleeping. And she isn't covered form head to toe in this rash, so I'd guess she is not allergic to your meat stick. Maybe she started using a new soap or cream or something. Anyway, it's nothing for you to worry about. Just go doggy until it clears up. Good luck.