I decorate, but I treat it like I’m setting up around the pool, not on it.
Biggest change for me was keeping everything a few feet back from the coping. When decor creeps right up to the edge, that’s when bits end up in the water. Now lights go on fences and pergolas, lanterns stay on tables away from splash zones, and anything lightweight gets anchored or skipped. Wind plus kids running around will test every decision you make.
I also think about what happens after dark. Warmer water, more people hanging out longer, higher bather load than a normal night. Even if chlorine is in range and pH is sitting around 7.5 to 7.6, the pool can look a little flat the next morning just from sunscreen, food oils, and traffic. I’ve gotten into the habit of running my variable speed pump a bit higher during holiday evenings and emptying the skimmer basket before bed. Filter pressure tells the story the next day. If it’s up a few psi, I know the party definitely happened.
So yeah, I decorate, just with a “would I want to vacuum this tomorrow?” mindset. Lights, color, themed towels, sure. Glitter, confetti, flaky stuff, never again. The vibe is worth it, the cleanup shouldn’t be punishment.