I live in Mud Island and my experience down here has been by far more positive than negative. I stay out of the sketchy places and frequent downtown quite a bit. I haven't caught a Redbirds game yet; minor league baseball doesn't really interest me, but the stadium is extremely nice.
I was born and lived in Memphis until I was about 7. Most of my family has moved away over the years so I don't go back too often but I do enjoy visiting. Not so sure I would want to move my family to Memphis unless I had to. I sat next to a Memphis coach at the UT/Vandy game who had a recruit visiting (the 7'0 kid, can't remember his name) but that place sounds like the Wild West as far as high school BB/AAU stuff goes. Just a different world.
Never had any real problems. Probably just become a little more callous towards anyone who walks up to me. Downtown is really exploding and the South Main area is also starting to attract a lot of upscale businesses/bars/restaurants/condos. I've never felt unsafe, but I've also never hung out in shady neighborhoods.
I've not been downtown to just hang out in years, and I've heard several people say this. I'm glad the city leaders have got their collective heads out of their rear ends and are doing this. It's long past due. I will say I am still surprised AutoZone Park has thrived as well as it has. I thought it would be a total bust.
I grew up in West TN, and we were far more likely to head up to St Louis than to Memphis. Time I was old enough to enjoy any of the good, I was in Knoxville. I've always felt it would be a fun place to be a college kid, but not that great a place to live day in day out. It's amusing to me that every time I've been out of the country and tell people where I'm from, they are completely mind-blown that I've never been to Graceland.