Wow, just come back to this old topic after a few years and it’s great to see how many people agree (or, at least did so back in 2017!) 
I actually found it by googling “Steinberg Embracer”, began reading the topic and thought: man, I really agree with this guy! Then I realised it was me! 
I recently decided to get the Embracer synth working again, in whatever way possible: I remember all those lush sounds it’s capable of producing, and have still yet to find a synth (hardware or software) that replicates this wonderful little VST.
So, I’ve dual-booted Windows 7 Home Premium onto my (Win 10) machine and I’m running Cubase 6, both in 64-bit. I can confirm that this setup allows Embracer to work with no problems, so if anyone needs it - this is a good way to do it.
As an added bonus, I can now use the Editor/Librarian for my SH-201 as well, another synth that time forgot!
*(As far as I recall, Embracer and co. are also available on Cubase 5 and 7 and indeed will work in any version up to 8.5 with VST 32/64-bit bridging/wrapping, as others have mentioned: it is indeed the fact that it’s VST 2 that stops it from working in other versions).