I think the first thing you need to work on is forgiving him - and that doesn't require an apology from him, just a willing heart. Until you are able to do that completely, this will eat you alive every holiday, every birthday...Yes it was arrogant, insensitive, and maybe even cruel (if he took such delight it) for him to behave the way he did about forgetting your birthday. It hurts that he forgot, but to be so callous about it was cruel.
Until you forgive tho, you won't be able to love him and the bitterness will grow a little every day.
That said, in regard to birthdays, since he obviously expects something, I agree that you should do it up right - how you want him to treat you on your birthday. But do it with absolutely no expectations of receiving a thank you, an acknowledgement, etc in return. Otherwise it's not really a gift to him out of love, but a manipulation tactic to get him fulfill you emotionally the way you think you need/want. As an aside, Do also recognize that there are some people who take and take and take and will never give back...
If you are able to do that (then not only are you an amazing woman with a huge heart...trust me...it's incredibly difficult), and he "forgets" the next birthday, then he has made that choice. He is saying he doesn't think it's important enough to remember, which you obviously already know. In that case, I (personally) would try to get over the hurt, probably with the help of some counsel, and ignore his birthdays also... not out of spite but because he doesn't recognize a birthday as an important event...
I dealt with this issue in my very short first marriage (to an abusive, alcoholic, etc. man) and with obstinate opposition to "manufactured" holidays like Val's Day in my courtship and marriage to my amazing husband. Let me assure you, if he values the relationship he will eventually recognize his error and begin to dialogue appropriately.
just my $0.02.
Good luck and God bless you and your family.