Should I have to change my wedding plans for my mother-in-law?

I've been with my future husband for almost 7 years. We got engaged last year and have been planning a wedding for July, 2009. His mother and father haven't been involved in our life together because of cultural/racial differences. In fact, he just told them about our relationship a couple of months ago-- and they just were informed of the engagement. Now that my future mother-in-law is "on board" with us being together, she wants the wedding to be in her home state. My fiance and I went to school together in my home state, which is on the other side of the country. He has friends and co-workers here and I have my family, friends and co-workers. Up until a couple days ago, our wedding has been scheduled (church, hall, flowers, cake) in my home state. Now that mother-in-law is in the picture, she wants it to be changed for her home state. My future husband says that he's willing to change anything as long as still can marry me. He thinks that things will be easier for us in the future if we make his mother happy. We've got about 3k to lose so far and not to mention, asking everyone to shift their plans for an out-of-state wedding. What do I do?