Lindsey just had her party this past weekend. This year was fun for me, because developmentally, she's out of the toddler stage and started into preschool - We got games, art kits, etc.
We put together a "wish basket" at a local store with some things she liked, assorted price ranges, and she also had a toys r us registry. When people asked, I told them we'd done so.. we've got relatives all over the country, and it really made it easier for them as they've got no clue what the kids already have. Plus, aside from Lindsey's my little ponies, I'm trying to avoid plastic, noisemaking toys... I told my SIL that and her response was "we saw this cool "the dog" toy.. when you pat it's head, it barks" (umm.. wouldn't that require batteries?). Most of my family has NO idea what playsilks are, cant figure out why a wooden tea set is preferable to a noisy Disney princess one, etc...
I didn't tell anyone we'd done so unless they asked
By far, her favorite gifts were her my little pony nightgown that a friend of mine brought, and her new wooden castle from Mommy and Daddy.