Our wedding was pretty cheap - our best bargains were:
Made our own invitations - bought nice cards from Hobbycraft and printed out using PC.
Combined wedding favours and place settings by buying heart shaped ginderbread Xmas tree decorations from Ikea (about £7 for 150 IIRC), putting icing on them and writing names on with a food colouring pen. We put them in little bags and tied them up with a ribbon, and they looked really nice.
Got the reception and table flowers from a flower wholesaler for about £50, bought 90p vases from Ikea, and my godmother arranged them. Used tulips as you don't need extra foliage.
My Mum and MIL baked loads of cupcakes and iced them in 'our' colours. FIL made a wooden tiered cake stand and sprayed it silver. Had this instead of a wedding cake.
Wedding dress - I bought an expensive bodice, but a cheap skirt from Debenhams - you'd never have known they didn't match exactly.
Bridesmaids dresses were 70% off in Monsoon.
You are NOT living in dreamland - you can have the wedding you want, with a bit of planning and lateral thinking. I think you need to decide what is important to you, and is worth spending money on, and what you are prepared to compromise on.
I really wanted a free bar, and didn't want a limit on numbers if I could help it, so we kept the food simple ( no starter, bangers and mash, then choc brownies and cream - yum)and, as well as the savings I've already mentioned - I was driven to the church in my uncle's Honda Civic, as I figured that no-one saw me arrive - DH went with best man, and DH drove us both to the reception in his beloved 1976 ford Escort.
You can do it!!!