I think it can actually be the opposite, Phuket is a great place to live in but I wouldn't recommend it as a holiday destination - too big, too crowded, much less appealing than some smaller Thai islands, unless you're lookig for a resort style holiday.
Living here is a joy because it combines the convenience of living in a city - shopping malls, hospitals, schools etc, with living in a seaside village - nature, proximity of the beach. Plus the tourism side provides the nice holiday vibe - good restaurants, bars, some entertainment.