War is hell after all. Embargo would have cost lives, but how many hundreds of thousands would have died as the battle raged all over the home islands? Would the blockade have cost more?
To put it bluntly, those two bombs saved the lives of literally tens of millions of Japanese.
Likely outcome of an invasion of Japan described here:
https://web.archive.org/web/20091101051918/http://www.webwizpro.com/1945InvasionofJapan.html