Last year I didn't feel like fighting the crowds and dealing with parking, so we just stayed in and watched TV
If I had gotten a room for the night on the strip it would have been different though, if drinking on the street with a crowd of drunk tourists is your thing
Ideally I'd say hit a rooftop club like Mix in Mandalay so you can see the fireworks. Voodoo Lounge (Rio) and Moon/Ghostbar (Palms) used to have good views, but last year they lowered the exploding point of the fireworks so you'd be forced to go to the strip to see them, so who knows if they'll do that again this year.