This has been a thing in the Catholic Church for some time, it's just that Novus Ordo parishes are less likely to do it (the blessing thing) because they let practically anyone come up and receive communion, regardless if they have been to confession in at least a year or are practicing at all.

Asking people who are unable to receive communion because they haven't been to confession in a while, or they are not of the faith, to just get a blessing instead of the Eucharist is the right thing to do. Receiving the Eucharist while in a state of sin is incredibly wrong, especially if you KNOW you are in a state of sin and haven't gone to confess or even want to confess. Same goes for if you are not of the faith and don't believe anyway. But even if you're in a state of sin, or are not Catholic or even Christian, you can still ask for God to bless you in the hopes that you may get over your sins or convert.

Hopefully people aren't going up in a state of sin (like they are an active sodomite), getting the blessing, and thinking that God approves of them as they are, because that's not what the blessing is for. The blessing should be to help move their souls closer to God and HIS divine will, not ours. But I'm sure there are many who go up to get blessed, not knowing this, and think, "See? God approves of my ways," even though that's not what the blessing is blessing.

Sorry for the rambling.