Dwelling upon the embassy/consulate thing is really just unnecessary smartassing. It's a perfectly plausible character error to have the CIA guys call it an "embassy", given that - as many others have pointed out - many otherwise educated people aren't aware that Zurich is not the capital of Switzerland, or even what the difference between a consulate or an embassy is. The people at the location in Zurich correctly call it a "consulate", as you would expect them to do.
The objection with the fact that Switzerland was not a Schengen country when the film is set is more substantive. It would, indeed, imply that Bourne would have to pass border checks when entering Switzerland by train from Marseilles, or leaving it by car towards Paris.
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