First, I thought I already replied to this thread and I don't see it so...oops.
Second, I marked a post as "helpful" up thread when I was trying to quote. Doh!
Third, my point, I would do some kind of take home for guests. I guess I never thought of it is "entitlement" on the part of the guest but a thank you on the part of the host. If the expectation in your area is pretty solidly b-day party = goodie bag/party favor, I don't think I'd make my kid the one to buck that trend and have to answer awkward questions on Monday at school. At the same time, I do not enjoy taking home odd bits of plastic and most parents complain of the same thing (of course, I get that if your child is in on the goodie bag shopping process, the first thing they want to do is pick random familiar-from-from-other-parties bits of plastic). I think art supplies, home made treats, or something that goes with the theme of the party (seeds and a pot, a book, a picture, etc) or a craft they've done together (you can get tee shirts from Hobby Lobby for like $2, iron on something and let them sign each other's shirts), candy from the pinata - all those are great.
I guess I don't see the whole thing as necessary but if it's an expected part of birthday parties where you life, as the mom of the birthday kid...I don't think I'd be the first one to put an end to it. As a mom of one of the attendees, I would be thoroughly embarrassed if my child ASKED about bags but she's five. I still coach her on some things on the way into any party. I don't see this ending anytime soon.