Shelley:
When you have a party at your house with just games etc, then yes, loot bags are a given because you give the kids something in return for the present they buy your daughter.
However, when you take the invitees bowling and then to a restaurant, no loot bags are required because you have already bought and given them something in return: dinner and bowling fun.
Last weekend my daughter had her party at our house and we sent quite some time making an art project which cost me a good $60 in supplies. The girls carefully covered a basic journal with fabulous velvet fabric and added a brocade/ribbon as bookmark and a sequined motif on the cover as decoration. This was their going home gift and no amount of plastic junk or chocolate was required. All the girls loved this project.
I will never go back to gift bags again: there will always be a something better to replace it, something original.
Seriously, taking them bowling and for dinner is a treat enough!
Clare