In my experience, kids don't really like the big blow-out parties - too much confusion and overstimulation. And friends don't really like them because it creates this competition and pressure to be sure everyone invites the entire world to their parties, which then turn into giant gift extravaganzas. Truthfully, a huge party at an expensive venue and 50 people with 50 gifts is way over the top. Then next week it's someone else's turn. By the time the year is done, everyone has been invited to 25 parties (with a gift of $25 per party) for people they don't dearly love. Kids get cranky, parents go broke, and the only people who are really happy are the ones who run Chuck E. Cheese or the bouncy house place.
She's 5? She invites 5 friends. You have a home party with cake and pizza or cupcakes and hamburgers. You play some simple games like potato races (get a library book on "old fashioned" party games - kids love them!), maybe get a piñata, and call it a day after 2 hours. You will be delighted that you fought the trend and didn't get sucked into the overdone party thing!