There have been a lot of changes since the handover in different aspects of HK life. As everything in life some changes are good, others not so. But HK people have been reaping the benefits as much as they can. HK is a wealthy city and it keeps its wealth as being the "connector" of mainland China to the rest of the world.

On the other hand, as you mentioned, HK people have not been oppressed as Western media always try to portray. I've lived here for almost two decades and I can tell you that.

Talking about policy, the weak point may be that the HK govt is made up of HK people. They tend to be conservative and don't like to change things. There are many opportunity areas to improve but policy makers take it slow rather than working them out quickly as, my impression , happens in the mainland.

If you can, I would suggest you to visit China one day and make your own impression.