I think most of you confusion lies in what is is actually being placed into the parameter when the embedded view is created. Hopefully the following helps:
When doing Drag and Drop (which is setup in the area noted in clarification point 3), the parameter being passed to the embedded view looks like the following screenshot and instance_number is an object when the dropConfig.udts.action value is binding:
In the new example provided, the way I configured the embedded view it only expected a String value that is a path to the tag which occurs when the dropConfig.udts.action value is path:
All of the properties being passed from these views to the faceplate rely on passing the type of object into the view you are opening which is the main thing that I modified.
As for the removal of the dropConfig, I am not sure why I removed that piece from my new example rather than just updating it to look like this.:
With the action key set to path the dragging and dropping of the tag from the tag browser creates the embedded view like you are expecting.
Garth