i would say it depends on how socially active your baby is. if your baby has been to daycare and has a lot of friends, or has a lot of friends in the building, throwing a cute baby party would be fun. it doesn't have to be a lavish affair, just something where your baby can play with other babies. you can also of course keep it a simple family affair, with a nice meal and simple outing probably to a place that your baby loves.
For the second birthday I intend to make it a much simpler affair than the first birthday and keep it only within family. They still have many birthdays to go so can't be every year hold a party. Perhaps when she is a bit older and have friends or classmates can hold a party again for her to have fun with her friends.
I think this totally depends on you and how the toddler reacts to crowded places. For my son's birthday we had a party as our son seems very happy when he is surrounded by a lot of people. But my daughter is simply the opposite so we had a little simpler party with just some toddlers invited for the party.
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It's depends on you , I just did my boy 1st bday last week , he is very happy n enjoy but also tired, so for his 2nd bday I will just do simple celebration with family
thanks