Last time I was back in April of this year, Lantau was a little better but realistically still not good enough to consider living there, much less bringing up kids. I ended up feeling out of breath crossing the road.
I haven't been back to Macau since I was a kid though, so it looks very different now (Thanks to Mr Ho.)
My grandfather grew up in HK too. He passed away last summer, struck down by a rather horrible respiratory based cancer. However, I'm wary of too much confirmation bias in attributing that to the pollution too. It'll be interesting to see what the respiratory disease numbers are like in the coming decades.