We did Vegas. I know it's not an exotic destination per se, but it accomplished a lot of the good an eliminated the bad. It wasn't a heavy burden because at least 1/2, if not more, of our small amount of guests were flying in regardless. We figured... would they rather spend 3 days in Phoenix/Scottsdale, and do we want to have to entertain everyone? Or would they (and we) rather be in Vegas where they have anything they want to do at their disposal? For the local guests, it was easy as well b/c Phoenix to Vegas is a $150 plane ticket, and everyone takes regular trips there anyways.
-we didn't have to over pay for a huge venue when we only wanted 30ish people
-the above issues
-you get a package type wedding, and you don't have to spend countless weekends picking linens and foods and locations and hotels and blah and blah and more blah
If the future Mrs. Itwasaliens really is in love with the idea of planning her wedding, don't go this route because it limits a lot of the "choices" they want.
For us, it was great. And we didn't spend ridiculous money. And everyone seemed to enjoy themselves.