Sometimes I think parents need to think of what their CHILDREN want and expect -especially since it's a kids birthday party. Honestly people, they're cheap little stickers and candies -why wouldn't you let your kids have that for an afternoon? Why would you throw it away? That's pathetic! We have gobs of the stuff too and weekly I go through and take the stuff that's no good anymore or half-used and throw it away -or in the case of little toys that are still ok, we have bins those go into. We ALWAYS do loot bags, and every kids party we go to has them (and my oldest is 4 -they've been getting them since the 1st birthday parties). My poor little goddaughter went to a birthday party where the parents obviously were just thinking of themselves instead of their kid's party -the cake was in a flavor the mom liked and all the kids hated, and there were no goody bags which prompted lots of comments from the kids leaving the party. The stuff you put in them is like carnival junk. It doesn't last, but it's really nice to see the kid's eyes light up with their goody bags -even if it will only last for the afternoon! AND -I'm 40 and I ALWAYS got goody bags growing up and they were always given at my parties, so the tradition has been around for quite some time.
I wouldn't concern myself with infants. I would just go for the age demographic of the kid who's having the party and up. Look for themed things -i.e. -my 4 year old had a dinosaur party, so we put plastic dinosaurs, dino stickers, dino tattoos and some tootsie rolls and suckers in the bags. We've been to airplane parties where we got airplanes; race car parties where we got little cars, etc. The poster who mentioned the dollar store is right on -those BOBO paddles, bubbles, mini play-dohs -those area great, and Oriental Trading is great too.