The HK tram offers a fantastic service for short short journeys in dense urban environments. It also offer the cleanest urban transport.
Would a scheme work on Kowloonside to help rejuvenate the areas to the west of Nathan road? This would need to be combined with significant tram / pedestrian priority schemes to make the areas more people friendly.
Kowloon tram root
The above link shows a potential 3Km route (try to ignore the zig-zagging as google maps struggles to offer direct walking routes).
Given vehicular access to all areas at all times is the most important rule for the current administration it could not happen yet.