Protecting the intellectual property (IP) of integrated circuit (IC) design is becoming a significant concern of fab-less semiconductor design houses. Malicious actors can access the chip design at any stage, reverse engineer the functionality, and create illegal copies. On the one hand, defenders are crafting more and more solutions to hide the critical portions of the circuit. On the other hand, attackers are designing more and more powerful tools to extract useful information from the design and reverse engineer the functionality, especially when they can get access to working chips. In this context, the use of custom reconfigurable fabrics has recently been investigated for hardware IP protection. This paper will discuss recent trends in hardware obfuscation with embedded FPGAs, focusing also on the open challenges that must be necessarily addressed for making this solution viable.