I think there are privileges and disadvantages with both experiences. Those who are born and raised in their country of origin have the privilege of stronger roots and a more developed sense of belonging. However, their life experience is usually narrower. Children of expats and immigrants live with TCK syndrome—that uncomfortable sense of rootlessness that comes from never fully belonging anywhere—but these kids often develop some really great traits as a result, including being more adaptive, resilient, and open minded. Bilingualism and/or multilingualism also come with benefits in terms of overall cognitive performance.
I was born and raised in my country of origin (a rich western country), but have spent almost my entire adult life outside of that country, both as an expat and as an immigrant. My children have parents from two different countries and thus dual citizenship. We now live in a third country—a rich European one—where we hope to nationalize as a family, because we feel it offers the best life chances for our children. They are growing up multilingual in a hugely international environment, and their worldview is very much shaped by their reality that our culture and language at home are not “THE” culture and language, but rather one of many. I think there is a lot of privilege in that breadth of experience, despite the challenges of rootlessness they will experience as third culture kids.