Most of these problems are applicable to most parts of HK and in no way exclusive to the Peak. Others are not real issues for Peak residents. You're right, shopping options are limited, but that is a trade off for living away from the crowds. Shopping options are also limited in Repulse Bay, Stanley, Parkview, etc and many expats live quite happily in all these areas. Most tourism around the Peak is a concentrated area and other than a bit of traffic has a very minimal effect on anyone I know who lives there. Also, some of your observations are just wrong. For example, Queen Mary, a very well equipped public hospital, is just across the street from Matilda.
OP: if you have the budget for the Peak you will be fine. It is quiet in the evenings and on clear days the views are beautiful. You are correct that there is often a lovely breeze up there. It is a beautiful place to live. However, as many of the homes are older make sure that the place you pick is well maintained. We have had friends that had issues with leaky windows that needed to be replaced. But, poorly maintained properties are an issue everywhere in HK. The crowds of Peak tourists are concentrated around the Galleria and most are there during the day, living at the Peak your contact with them will be limited if you want to avoid the, its easy. A few observations of others are spot on, it is often misty/ smoggy and the traffic is bad. But, traffic is bad almost everywhere in HK. The humidity is easily dealt with inside with the AC or a dehumidifier or two, big deal.
If you value air quality, a view and a breeze and want to stay on HK island, also look at Mt. Butler, parts of Pokfulam, Parkview, Jardines Lookout.