That's exactly the mainstream sentiment here in China. Most people think that the central government is too soft and way too lenient to these Hong Kongnese and should leave them selft-destructing while Shanghai and other places completely replace Hong Kong as the whatever hub it has been (mainly because of the mainland). Alas, as always, if that happens, the average and the poor will be the ones to suffer.
This is so damn true.
It I were the central government, this is what I will do regarding HK:
1, Trim down the Basic Law, only keep the part about sovereignty.
2, Withdraw the PLA stationed at HK.
3, Grant full immediate democratic election to HK. You want to vote whoever you like? Sure no problem.
4, You don't like mainland women to give birth in HK right? Sure I'll ban that.
5, You don't like mainland tourists flooding your streets and "pushing up prices" right? Sure I'll restrict the number of tourists to as low as it doesn't make any impact at all.
6, Water, Food, Electricity will have to be charged at higher than market price. Otherwise HK can import these from elsewhere if they think the price is too high.
7, Move RMB off-shore clearing to Singapore. Or the new economic zone at Shanghai. We won't bother you any more.
Let HK be an experimental field for democracy. Let's see what else HKers will complain. Let's see what true democracy will bring to HK.
Taiwan is waiting for you guys on the path called "stagnation".