I think it's common in England to have a nice dinner for a subset of the invited guests, and then invite everyone out to dancing afterwards, isn't it? I might be remembering it wrong. It sounds the like wedding couple here might have been going for that model--nice full meal for a few (family luncheon, I guess), partying for everyone.
Of course, it isn't a common model in the US. Also, I don't know if in England it's common to just say, "Meet us here, pay your own way," or if the couple would usually pay the cover charge for everyone at the bar instead.
In my experience in the UK, the way it often works is that a certain set of people are invited to the ceremony and to a sit down meal, where all the speeches etc happen. Then, later in the evening, additional guests are invited and there is usually a buffet for food, a bar and dancing. You can have the whole thing at one venue, or if its a church wedding, church for the ceremony, and then say, a stately home or golf club or similar for the reception - the latter is usually the location for both the sit down meal and the dancing and buffet later - it would be rare for there to be a third venue. Both the meal and the buffet are usually catered for in the budget - I've never heard of anyone charging for those, and usually wine for the table is included for the first meal. Sometimes the bar is also paid for, but more usually, it is a cash bar (yes I know that is contentious, but it is honestly the norm in my experience). I suppose this is 'A' list and 'B' list, but its always really clear which you are invited to, and I've never had an issue with only being invited to the evening part - just happy to go to the party!