The 1st birthday is an important occasion in Hawaiian culture. Even though the baby absolutely has no clue as to what is going on and why everyone has to squeeze their cheeks and smoohter them in aunty's nasty perfume, its a tradition. The baby luau is supposed to elicit huge amounts of laughter from your family. Conversations should include catching up on the good 'ol days, what you doing now, how many kids you get, and of course talking stink about each other in front of each other.
What ever the reason to have a baby luau is, just remember its about celebrating a life.