I can encourage you ^&^

I lived in Japan for 3 years and I've never seen or heard of anything QUITE like what is described.

There are certainly a variety of hostess clubs of all sorts. Most just have your garden variety mini-skirted cutie who comes out, drinks and smokes with you, does Karaoke with you and charges you a bunch of money. Unless you go to the right club you'll be lucky if you touch anything more than their knees or hold hands.

There are some that cater to FAs (and just about any other fantasy that's marketable) and I've heard of one where you could buy them treats but I can't remember the name. Places like that are very expensive and kind of exclusive. They're not impossible to get into, but as a foreigner, its not the place you're just going to walk into either.