didu, I too think its ridiculous.
I think people are afraid of:
1) Non-frum relatives that may be part of their grandchildrens lives
2) What their neighbors will say when they find out
3) The lack of “yichus”
4) whats the neighbors will say when they find out
Its part of the many problems that exist in the shidduch world today. Are you parents rich? Money solves many things.