Like previous posters, in NZ - or at least the part of NZ I'm from, it's common to invite everyone to the ceremony, then have a breakfast for close family and friends then a dance with most drinks and supper and desert provided.
When we got married our ceremony was in a friend of my mothers garden, very small, so it was immediate family and partners of the bridesmaids/groomsmen only. We had a breakfast for the same group (about 25 people in total) then we hosted the dance afterwards. And to be honest, we got married on a fairly small budget but the dance with most alcohol and all the food, the band etc paid for by us was about 80% of our budget. The wedding dance was the main event for us and everyone else. I couldn't tell you now who gave what, and I had no expectations that anyone would give us gifts of any type. Those who chose to received thank you notes, all were thanked on the night for making the effort to be there and share it with us.
Every place, country, culture does things differently. If it's the norm for that region, (and it's not illegal or immoral) then there's nothing wrong with it. If it's not something that is done in your circle/area then yes, people will get their feelings hurt.