Though if you have time to spare to take in the whole scenic experience, you can certainly take the tram or bus (we wanted to avoid the crowd and the wait which sometimes can be up to an hour or more on the trams).
Victoria Peak has evolved over the years. I've probably been up here as a child living in Hong Kong, yet I don't have any recollection of it.
Hong Kong Extras does a good in-depth overview of what you can find at the Peak and how to get there. If you plan on riding the Tram along with visiting the Sky Terrace, you can pick up a combination ticket.
The big attraction is the view as it is considered a "must-do" in Hong Kong (just about every single guide book about HK features a night shot from here). Otherwise, there are a variety of souvenir shops and scenic restaurants. It's safe to say I've checked it off my list and won't need to return for a while.