First off, you want to say that you're Fin Fang Foom there; it was a little confusing at first to figure out who you were.
Embassy/Tunnel can be really strong, but a) you can probably tell something's wrong based on you having to buy three embassies. You shouldn't get to that third one really because you ought to be raking provinces by then. b) The big thing here is the witches. You don't want the embassy so early first of all because you want gold more, but moreso you're going to get a lot of terminal collision going on there, and until the curses are gone, you really really want to play that witch a lot, which the embassies actually hurt. c) It does look like you got slightly unlucky. But the big thing is the witch. Probably I would totally ignore tunnel/embassy at least until the curses are mostly run out, quite possibly longer depending on the state of the game at that point.
Though as GendoIkari points out, hamlet could *possibly* have helped you out too.