"Is embedded development really that poorly paid?"
At least in Belgium and the Netherlands it is, yes. I've interviewed a few times for roles like that, and they were always poorly paid and very depressing looking (like one guy beaming 'this will be your workspace!', pointing to an ancient pc on the edge of a lab table with a chair with holes in it. I think since the electronics guys didn't have chairs, that was the comfy position in the company?)