Cake or cupcakes?

Hubby and I are having a debate...I suggested a small cake for us to cut and cupcakes for guests. It's more cost effective, a cake would cost close to $700. The small cake with cupcakes could save us $300. He thinks everyone should get cake. Have any of you been to a wedding where they served cupcakes? Did it look off, as my husband says? Thanks for your help.