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Obviously, on a boat in Lake Michigan is the spot. But...
After 15 years of fighting the following each and every year:
1) Traffic to get to the boat (McKinley Marina) on the road, including all the marina tenant special permits, passes, and conflicts just to get anywhere near LMD and Veterans Park)
2) Traffic on the water leaving the marina (amateur night, no less)
3) Traffic going back into the marina after the fireworks
4) Traffic LEAVING the marina on the roads (lots of drunks)
I decided it was better to walk to Lake Park from my East Side home, watch from St. Mary's hill or that area, and then walk home. Leave boating for a another day. Great view, easy escape, no driving. It's nice to go boating for the event if you have the option, but it's better NOT to, IMO.
Having said that, it took me 15 years to figure that out...
If you can get a rooftop view on a building downtown, that's the best possible place to watch from. The traffic in and out of downtown Milwaukee is tough, but it's a great view and the display is worth seeing. Karfar said it best--get there EARLY, if you want a spot in the park. And after the fireworks, don't bother driving for 2 hours, all you'll do is sit in traffic. Leave 2 hours after the fireworks are done, and you'll have clear traffic the whole way.
Enjoy.
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