The first birthday party is much for the parents/adults than it is for the child. They really have no concept of what's going on. It's great for photo opps, especially the first piece of cake.
At that age, they really haven't learned how to play with other kids - they play alongside them, and they'll have no memories of their own.
We WAY overdid it for our son's first birthday using it as an excuse to have people over we hadn't seen in a long time. I regret the hoopla as I really didn't get to enjoy the party because of being hostess.
Whatever you decide, make sure you get to spend some time with your daughter - it's just as important for you as it is for her.