I find it depends entirely on social norms in your group.
If your group of friends would normally go out for drinks, or out for a meal together as part of your social life, then arranging to do so on your birthday, at the kind of place you'd normally go to, is totally acceptable, and not an imposition on your friends.
It becomes rude when this is not normal in your social group - say you're mainly parents of small children, and you tend to socialize at each other's homes, or at a playground while the kids play. It's also an imposition if the place you've chosen is more expensive than the places you normally go out - if your normal socializing is at the local pub or low end restaurants, arranging a pay your own way meal at a fancy restaurant is out of line unless you're treating. And it can be out of line if you're inviting people you wouldn't normally socialize with to subsidize your birthday do.
And it is a good idea to keep it low key. "Hey, let's go out for dinner on my birthday" is very different from throwing a huge shindig centred on yourself at other people's expense.
For younger people with no kids and very small apartments, the social model is very often going out together - to a pub, to a restaurant, to a club - with everyone paying their own way. As others have said, the model of having one person treat everyone and taking turns is problematic, and ironically, the less financially established you are, the more of a burden it is. Someone who owns a house can entertain their friends much more cheaply than someone who rents a one room apartment with no kitchen. The former can have a bunch of people over and make home-cooked food, providing drinks within their budget. The latter - well, you can have one person at a time over throughout the year, if you bring in take-out and they don't mind sitting on the bed to eat. Taking people out can be hard to control, financially - you need to find somewhere that's both cheap, and where you can control what people order.