My FI and I recently moved to Vegas (2 mos ago) and we love it here. Our family and friends are spread out around the US (Houston, New Orleans, Vermont, New Mexico, etc, etc), so no matter where we have it people will be flying.
We always dreamed of having our wedding in mexico (playa or cabo), but we're starting to second guess that lately with the ridiculous airfare prices! A houston-cabo flight is now around $850! I think on average if we went with an AI, our guests would spend $2,000 each coming to our wedding. We want a small wedding (around 50ish), but our extended family might not be too keen on spending that much ! Also, friends might not enjoy spending that much on coming to a wedding.. arg
Vegas isn't free, but flights are much cheaper, and there are so many more hotel options to fit into any budget.
Targeting a wedding next fall (Sept or Oct), so hopefully we decide the place soon!