You're on the right track. There isn't a more native way to "embed" PDFs on a web page than publishing the PDF, rendering the markup, and giving editors a way to manage the PDFs. From the editor perspective they can insert images or links, which can be PDFs, but there is no "embed" option.
There are a few ways to "embed" PDFs in markup. After confirming which behavior (and markup) you want on the website, you'll want to confirm the best content model for the editors. It doesn't have to be an Embedded Schema.
Content editors could:
- Place PDFs directly on a Page (as a Component Presentation)
- Publish the Multimedia Components dynamically (from a folder)
- Link to the PDFs from a Component and then publish the Component or Page
Your template for the PDF or the Component linking to it (or view, if using an MVC approach) will render the "embedding" markup. You'll also publish the PDF either indirectly using AddBinary or directly with its own (dynamic) Component Template. The details @BartKoopman mentions will help get you specific answers, but you'll likely parse the markup in your Output (in a Template Building Block) to detect and add such PDFs.
If you make the PDFs fully "dynamic" and have editors directly publish them, you might use GetBinary as well in delivery, depending on where you want to render your markup.