We're struggling with this one. We live together, we're both in our 30s and have been living independently for years, so we don't really need anything, but a lot of the stuff we have has been inherited from family members who were chucking it out, so it's functional but old and tatty. It would be nice to replace e.g. the chipped, cracked cereal bowls with a nice matching set, or the threadbare towels that Mum had for her first wedding, but as we've got bowls and towels it seems cheeky to ask.
I feel very awkward about asking for money, even though friends have said they'd rather give us money than bowls and towels. We would save it for the New House we hope to move to soon, and (fingers crossed) baby stuff - we'll be ttc after the wedding.
But, I know that both our families will want to give us a present of some sort, because that's the tradition at weddings, as at Christmas, birthdays and other celebrations. We don't want 13 toasters and a Lladro ornament. So, I think we will go down the John Lewis list route.
It's another wedding dilemma, and I doubt if any bride wants to offend her friends and family. If you object to what's being asked for, don't give a gift. They probably won't notice.