I'm tempted to say television at home. I haven't travelled into the city for New Years Eve for a few years now. Mainly because of difficulty catching transport home, crowded trains and buses during 40 degree heat -not for me.
I agree that the Yarra banks have very good view to watch the fireworks. Other places are on top of the Eureka tower, or any high building around where your view points won't be blocked by people and other buildings.