Destination weddings are what they are.
You'll have people on both sides of the fence, with valid arguments going both ways.
Do what YOU want to do, but know that there will be a LOT of people who simply wont be able to afford to go (unless of course you and your friends are all well off)
- $1500 minimum per person going for a 5-7 day wedding in Mexico @ a reputable resort.
- Everyone has to put aside a weeks holidays (not always easy)
- Anyone with kids has to either bring them (if allowed) or find alternate care which might not be easy
- Weddings are already $$$ because the word "wedding" = cost but a premier resort in mexico + wedding = mega pricey, but if you have the cash then by all means do it if thats what you want to do
I get you have family there (parents on both sides) but perhaps you and your immediate families go down for a wedding and then come back here for a second "gathering" with extended family & friends? Not sure if that's an option but it could also work.
Perhaps sending out a pre-poll like question to a number of your guests and gauge their interest may work?
I've been to a few destination weddings including 1 in Mexico about 6 years ago, and truthfully given todays economy I don't think I'd be able to do another one, especially with having 2 young kids. The last one I did was Chicago with my wife and 1 kid (10 months at the time) and for 4 days it was we'll over $2500 CAD.