Well, since he said it was "bizarre", it may be a joke EA put in the game. But they did have a form of a bubble machine in Sims 2 where there could be like 4 people together who tasted bubbles through some pipes or something (I remember a lot of hovering around, literally ). I don't know if that's a bubble bar, but it sure was funny!
They were enjoying it like it was something that's not good for people in the real world, if you know what I mean. Sorta like a multi-port hookah. Popular party item, that's for sure.
Though come to think of it, I believe they have or had something similar (it was a fad for a while) that used oxygen in Real Life. I don't know if it came in all those colors though.
Oh, I just remembered that I've heard of foam parties. If I go by the ep of CSI I dimly recall, they came in different colors (don't recall about scent or flavoring or it might not have been brought up) which I think people danced in. If they did anything above a teen rating, I don't remember anything about it.
That's two options of what it could be like.