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is it possible to allow end users to create their own reports/dashboards? Basically I want to embed the entire web client into my application.
If you're talking about Power BI Embedded, you can allow you users to upload the pbix file to your application server and then import the pbixs to the Workspace on Azure. Check power-bi-embedded-integrate-report-into-web-app/ProvisionSample/.
for clarification purposes I want to embed this
so the users can create their own reports/dashboards
AFAIK, it is not possible. You can submit your idea at Power BI Ideas and vote it up.