Well, I have very mixed feelings about this. (I grew up in a multi-generational household.)
A multi-generational home environment means your dinners and weekends are spent with gossiping great-aunts and competing cousins. That tends to push people towards career, social, and consumption choices aimed at placating/impressing the shallowest, most materialistic of their relatives. Doctor, pharmacist, engineer at a big company, etc. You're forever being compared to Auntie So-and-so's son who is already married to a nice girl and drives a bimmer. And what kind of "entrepreneur" do you think you are, you sit alone tinkering with computers after you come home from work, don't you play with computers enough at the office, why don't you open an import company like Uncle So-and-so and under-declare the customs value and make lots of money like that!
I don't think it matters if you live in a multi-generational household as much as it matters how much you interact with your extended family.
I live with my wife and child only, but I still have to constantly have to fend off "suggestions" from aunts, uncles, and my in-laws (especially my in-laws). "Buy a house", "drive this car", "look for a job at...", "go on holiday to...". In many ways I think I have the worst of both worlds - limited support from family because they live in a different city, but plenty of interference.
From my perspective "have very mixed feelings" is overly generous. The idea of being stuck somewhere with not just your parents but a variety of other relatives sounds oppressive and claustrophobic. I think I'd end up spending most of my time away from the place (and I have good relatives).
Don't overgeneralize: my guess is that multigenerational households simply amplify the cultural values of the family relative to the cultural values of the nation and city and neighborhood you're in. This could be a good thing or bad thing...
If unusual characteristic "X" is important to you, you probably gravitate towards coworkers and friends who are good at X, or striving to improve themselves in X, or at least respect X --- basically, people who can damp the broader culture's relative indifference or hostility to X rather than amplify it.
In contrast, people do not get to filter their extended family network for X. A given person's extended family is likely to be pretty average (for whatever country/city/neighbourhood they're from) in terms of X, respect for X, etc. Perhaps some cousin somewhere is also an outlier on X, but that cousin will have only a little influence on the signal being sent by your extended family as a whole, and you might not even figure out who that cousin is.
If you were born into a whole clan of people who are above average on whatever X you find most important, well then by definition you're not in an average situation --- you hit the jackpot when you were born, and many people envy you.
Those of us who are traveled enough can tell you that outside of North America and most of Europe, the Multi-Generational Family never went away. I am unsure whether that is culture or economics, 'good' or 'bad'. But there it is.
A multi-generational home environment means your dinners and weekends are spent with gossiping great-aunts and competing cousins. That tends to push people towards career, social, and consumption choices aimed at placating/impressing the shallowest, most materialistic of their relatives. Doctor, pharmacist, engineer at a big company, etc. You're forever being compared to Auntie So-and-so's son who is already married to a nice girl and drives a bimmer. And what kind of "entrepreneur" do you think you are, you sit alone tinkering with computers after you come home from work, don't you play with computers enough at the office, why don't you open an import company like Uncle So-and-so and under-declare the customs value and make lots of money like that!
Cherry-picked bonus link: Living in intergenerational households triples Japanese womens' risk of heart disease. http://www.eurekalert.org/pub_releases/2008-12/bmj-lim121008...