I truly believe that embedded system is going to be here for the foreseeable future, at least until a totally new paradigm comes online.
Looking at the current landscape of systems, the majority of electronics these days are still an embedded system of sorts. Even your ubiquitous mobile phone is an embedded system, and it uses a variant of embedded Linux. For smaller system, there are plenty of other options where embedded knowledge would be extremely useful.
A good choice for an engineering student? well, only the engineering student can answer that as there are many reasons for pursuing that engineering discipline.