My real question is virtually just like - How to create a virtual file ? except I wish to get it done in Linux rather. I imagine what I have to do is produce a virtual tool and point the applying logging to that particular device. Let me write the unit in python or ruby or something like that else construed, if at all possible.

Use [cde]. You may create a socket file which your applications can write too. As well as your logging application would connect with the socket to see from this.

take a look at named pipes