I think a fear of God is a good thing for when you're growing up. Even though I'm not religious, I'd probably fake being religious if I had kids just to put a fear of God into them. I tend to think that's what religion is really for anyway, raising kids. I think most people when they are 45 years old or whatever don't actually believe they are drinking the blood of Christ every Sunday.
Not quite. The sad part is that most people's understanding of religion and of God atrophies when they are young - maybe about 7th grade or so. You can't run a business with a 7th grader's knowledge of accounting, have a successful marriage with a 7th grader's knowledge of sex, or have theological discussions with others with a 7th grader's understanding of religion. Taking proper theology courses in college really does deepen your understanding of faith and its development over the past few millenia. But more to the point, although having/raising children is a big part of a life of faith (although not required), there is much more to it than that.
...and yes, transubstantiation is a belief that most don't grow out of. New understandings of the Eucharist do develop, but for those denomimations that believe in transubstantiation, it isn't something that goes away.