I don't think your idea is stupid. Especially since you're daughter is only 2. I'd assume many of the kids you're inviting our little, so as a parent, I wouldn't be giving my 2 yr old candy or those little plastic toys that usually come in treat bags anyway.
Just another idea too, I've read once that kids can understand/play with as many friends as they are old. Instead of inviting tons of kids and family to a birthday party, we've focused on making a GREAT experience for only 1 or 2 friends, and then just having a small, not all dec'd out, birthday celebration. Our kids have really loved the idea of going to a movie of their choice, getting popcorn and a drink and taking a friend or two along. They sit in a separate row and have a blast. For our 7 yr old's recent bday, I bought her the Ramona and Beezus book. I also bought one for her friend. (I called the friend's dad first to make sure this was ok.) Then we made an invitation over a month in advance, attached it to the book and invited her friend to read the book and come with us to the movies to celebrate our daughter's birthday.
Around us EVERYONE does bounce house place, bowling parties, etc. It's hard to find something original AND something that doesn't break the bank.
This was a wonderful option for our 7 yr old. Maybe these ideas will help you going forward to not get too caught up in what everyone else is doing.
Best wishes