Yes, Observable is an abstract class, not an interface. I guess because it has a fair bit of functionality and helper methods built in.
When I started
Java it didn't occur to me to look into Observable because I that it was just for Swing, so I made my own little pub-sub widget. The GoF on Observer mentions a "change manager" and I guess that's what I made. I saw it more as a subscription manager, tho, so the subject object would not have to know maintain a list of its observers. I also used the "push" variation, where the change event notification can include the changed data as arguments.
This
Messaging page has a few diagrams for observer & pub-sub framework alternatives.
So, your data object could be a Publisher even without being Observable. I'd be happy to share my little Publisher - 123 lines - if you like.
If you don't go that way, could your embedded Observable objects have a reference to their parent to make it easier for observers to figure out what changed?