My sister lives on a white picket fence street in downtown suburbia. Her neighbours have parties with pony rides, jumping castles and professional face painters. Needless to say- the kids loved it. On the other hand we went to another party with a trampoline, a home-made pinata and fairy bread (pieces of bread with butter/sprinlkes)- the kids LOVED it!
Ultimately, I think it's all about the parent's ego as opposed to what the kids want. Just think about what your child really enjoys, even if it's just an ice-cream cake at McDonalds, because it's their day!