I think that just like any place there are advantages and disadvantages. I couldn't have gone to the beach and do all the water sports where I grew up and certainly didn't have the opportunity to visit a variety of different countries, have the opportunity to learn different languages, if kids are good at sports they can more easily make Hong Kong team and travel. Big fish in a little pond... Academics are generally more valued so there's more pressure but also a better atmosphere to study particularly in the better school than in many western countries.
Of course, kids have a lot less space here, will likely not drive or get a car as teenagers, you don't ride your bike to the park and hang out with your friends and play sports here, it has to be more organized, pollution is awful and not conducive to spending many hours outside. No easy access to winter sports.
So you can choose to focus on the positive or the negative to suit your outlook. At the end of the day, if you have a good family and enough money, it really doesn't matter all that much.