Jill,
This is your opportunity to decide how you want your wedding to go down. For us, if we got married at home, it would have been rediculous - probably 200. I simply did not want a wedding of that size, and I really just want to have close friends and family involved that contributed in some way to our relationship.
We chose a destination wedding for several reasons:
1. We wanted an intimate fun way to get our families together in the same place for a weekend. My fam is in Cali and his is in Arizona - Cabo is a nice meeting point.
2. We didn't want to have the obligatory invites - i.e. we didn't want strangers at our wedding.
3. We wanted to get married on the beach.
4. We wanted to do something non-traditional.
So my advice to you would be to sit down with your FI and talk about what kind of feel you want at your wedding. Then use that as your guide when deciding who to invite. I will say, once you start sliding down that slippery slope of inviting people out of guilt, it can get really out of control! We've had to check ourselves a couple times in this process. I hope this helps