Did he freak out at the sight of the cake? Or when he touched it (a texture issue probably) or when he ate it (taste, too sugary, texture issues, or possible sign of allergy).
I honestly think the baby smashing the cake and making a huge mess for the first birthday is silly. My oldest fell asleep before we could serve her the cake, and for my youngest I made cupcakes, put them together to frost (so it was like 1 big cake, sort of) and then gave baby just 1 - he didn't even know what to do with it! Don't worry about the tradition of the cake - and don't worry if your family or your in-laws say something about not having a cake mess. He's your child, you know what's best for him, and you're going to do that. He'll likely be tired anyway from all the birthday stuff, which makes a grumpy, so go ahead and skip the cake if you think it'll be a problem. Or just serve it for everyone else like you would any birthday.