Agreed, but Darryl’s point seems to be that Luther rejected Confession/Holy Absolution. This is where he is incorrect.
I do not know where you get the idea that Luther rejected what Catholics call Reconciliation, and what we call Holy Absolution. Certainly he doesn’t mention it in the letter to Melanchthon that you pulled the quote from. But then again, it was a private letter, not a doctrinal statement, and between two theologians who knew each other well, not everything has to be stated. Some things are assumed.
From the Augsburg Confession (while Luther didn’t write it, he did approve of it)
bookofconcord.org/augsburgconfession.php#article11
And from the Small Catechism, which he did write:
bookofconcord.org/smallcatechism.php#confession
Incidentally, the format Luther proivdes here is the usual format used by Lutherans for private confession. And Lutherans believe that pastor/confessors, when they grant Absolution, speak in personal christi.
Jon