I agree with those who say to cut the strings NOW. I had to do this with my MIL and it was the best thing I could have done. DH & I live on the West Coast, IL's live in Ft. Lauderdale. DH & I planned and booked a Disney Wedding. MIL wanted the wedding in her backyard. Said none of her friends would go to Orlando. I told her it was either Disney or local for us. She threw a fit about Disney so I said OK the wedding will be where we live. I doubt any of your friends will fly that far.
My family didn't care, except for my parents, they all had to travel anyway. My family would have gone anywhere we wanted. So we planned the wedding locally. I refused any money from dh's family until after all the final deposits were paid. That way she had no say. For our wedding they gave us a very large check. I thanked them and told them it would help with our honeymoon and very much appreciated.
The only thing we regret is that we didn't have our Disney wedding. But my MIL learned very early on that she could not control me and that has been a huge blessing. (Not that she doesn't try.)