When I was beta testing the Embedded UI the behavior I saw was this (hopefully this isn't too off topic):
When the Embedded UI was disabled in MAX the behavior of the system was consistent with typical RT targets (e.g. don't use event structures with front panel events)
When the Embedded UI was enabled in MAX it worked (with some caveats) just like VIs running under windows
When the embedded system is remotely controlled, e.g. you are deploying and interacting with the target from your development system event structures work properly
When you disconnect from the target you can then interact with the VI directly from the cRIO via KB + Mouse, and VIs with event stuctures properly processed everything
The application I was testing was the standard QMH with an event loop and a message handling loop.
So, if the embedded UI is enabled, UI Events are supported!