I went to a cousins NYE wedding several years ago. Apparently her parents were married NYE so a 'tradition' for them 
My now DH and I were mid 20's at the time and I thought it was a bonkers idea and far more expensive for us and the wedding couple.
If your guests are ALL local, then presumably no one is paying NYE charges for hotels, private parking, trying to book hair/beauty on NYE or would have travel issues getting home on new years day- lack of public transport etc?
For yourself, surely you are paying more for your hotel, reception, photographer etc etc?
What time does your reception finish? If it clicks past midnight, surely you are paying a premium rate for bank holiday rates for all staff/venue etc?
It wouldn't bother me that its 'close' to Christmas at all. In my 20's, I wanted to go out clubbing/to a bar NYE rather than a wedding, but in my 40's now, it wouldn't bother me- but we don't have children. My main concern in my 20's was the cost. For us, we had to pay for flight, hotel, taxis, and find somewhere new years day for food which was tricky- all of which was at elevated costs.