We've had parties at home for DD's 3 birthdays so far.
1st Birthday - We had a duck theme - I'm not sure why a PP gets 'the rage' about themed parties, but my daughter was OBSESSED with ducks (blame being a lockdown baby, we saw those ducks most days of her first year as there was sod all else to do). I spent bloody ages (and yeah money) making a cake, we did have a balloon arch but I got it off a thrift site from someone whose party was a few days before, added a few extra bits of my own and then passed the whole lot on again. I bought a yellow spotty tablecloth and her grandmother made bunting.
Apart from that it was just family, friends and a few neighbours coming for some lunch in the garden, and it was lovely - especially after a really tough first year without being able to do anything to celebrate our long awaited first child, not even have people meet her for months and months, thanks to lockdown.
Second year was ducks again, with a few bunny rabbits chucked in for good measure, and we also hired a bouncy castle. Third was dinosaurs, with the bouncy castle again.
She definitely remembered her second birthday when we were talking about her third, I'd actually thought we might not bother with a party again but as we were talking about her birthday coming up she was saying 'yes and I'm having a jumpoline (she meant bouncy castle) and a duck cake' and talking about the people who would be there. Obviously no memory of the first but I don't think that means it had no value for her either.
I also hate the whole 'nobody apart from you and maybe the grandparents cares about your kid' line - my daughter has lots of people who love and care about her thank you, and that has always been important to me which is why we make the effort to build/ maintain those relationships. I also love/ care about lots of children other than my own. I don't assume anyone is as interested as we are obviously, but it's really not true that nobody else is bothered - and most of my family would happily turn up for a buffet lunch and some cake even so.