We get tired of the tourists, and in the summer the crazy humidity. Also the tourists are often disrespectful of the city and leave their garbage everywhere. I always say Venice is like a museum city and should be treated as such.
The pros are that there is no noise from traffic and little air polution as well. Also most of us remain in very good shape because we must walk everywhere. A huge pro is that we get to live in an amazing city of rich history and culture that most take for granted.
An obvious con is the Acqua Alta, but you get used to it and learn to avoid it. Also fresh produce must be shipped in an is expensive. The island of Sant'Erasmo is where the farms are and I get fruits and vegetables delivered from there...
Overall, a very unique living experience and so thankful for it!