Same thing happend with Gang Up when they printed Lab Recruiter. It's actually almost exactly the same power creep lol.
You are right about it. But when it came to Gang up it was possible to combine it with Preparation and Lab Recruiter can be combined with Brann in wild. This on will always be the same effect if you wouldn't cast the original for the "spell" tag
It isn't better version of Embrace the Shadow. Just variant for different purpose. Embrace the Shadow, while lacking 3/2 body obviously, is usually used in combo decks with synergies like Auctioneer, Lyra, Radiant Elemental, Shadow Vision, Legendary Weapon, Spellstone. In those, you'd run Embrace over this minion. Also, Embrace doesn't wreck your resurrect pool.
This is like Auchenai Priest that can be used in board control priest or tempo based. Combo with circle of healing for board clear earlier than usual old Auchenai+circle.