Hey Chris,
The Lutheran Church practices this same thing only in another way. We do believe in "Real Pressence" that is, Christ's body and blood are in the Sacrament that we recieve. Yet the process (transubstantiation/Consubstantiation) are not rigorously enforced, that is to say, one may believe what one wills, as long as one believes that Jesus is truly present in the Sacrament.
On the note of confession, we do feel it necessary that we come to this Sacrament with a contrite heart. We do confession before the Sacrament to remind us of our failings and of our need, as St. Ambrose said, to take the medicine. Confession is admonished in of itself, yet it is used in conjunction with the Sacrament not only to Conform to 1John but also to St. Paul's epistle to the Church of Corinth.
-James