Sheesh, I live in the Hudson Valley, too but have never been to a wedding here and now I'm glad about that. However, I'm in Rockland County so maybe it's not so bad over here in my hippie town.
I say, sure, pay $200 if that's easy for you. If it's not, then pay what is easy to afford, period. I agree with others that it's not the guests' job to give gifts to pay for the wedding. (I have to admit I had a relatively inexpensive wedding back in Houston 10 years ago and I guess we made off like bandits because we got some awesome freakin' gifts.)