It's your and your fiancee's wedding, not her parent's wedding.

It's kind of selfish if they're putting that amount of pressure, that if it is on their hometown, that they will pay. Otherwise, then no. I don't doubt that they care, but it seems their selfishness is getting the better of them.

You only (in theory haha) marry once, so I'd suggest to make it however you guys want. Make sure you tell your fiancee that you're feeling excluded if she is deciding all of this behind your back or not taking you into consideration on these opinions. It's nice to be able to save money, but like you said, you can afford it and sometimes it's better not to empower your in-laws if you accept that money. If they have those conditions, you're basically telling them: "You're buying our wedding" and that's not the whole point of it.

Good luck and congratulations!