for your child's 2nd birthday, will you still have a party (where everyone is invited) or will you make it simpler (family affair type) than your child's first birthday party?

I think this totally depends on you and how the toddler reacts to crowded places. For my son's birthday we had a party as our son seems very happy when he is surrounded by a lot of people. But my daughter is simply the opposite so we had a little simpler party with just some toddlers invited for the party.