Where did your parents go on their honeymoon? Mine went to the southwest, where they went camping and stayed in $3 hotels. Truthfully, whenever my dad tells the stories, they're pretty funny and I liked hearing them growing up, especially because we often vacationed in the Southwest when we were kids.
I wanted that for my own family. I wanted to be able to take my children wherever we went, and say, "we went here on our honeymoon" or "we stayed at that hotel, and look, it's still there!" So that was a factor in our decision to take a domestic honeymoon.
I think there were some people who were surprised that world-travelers such as ourselves would choose such a simple honeymoon to places where people regularly get sent for conferences, but we didn't want the long flight and the big time change to go to Europe or South America or Australia or Asia. We were short on vacation time and I didn't have a job lined up, so we weren't looking to spend a lot of money, especially not on airfare. It was hurricane season in the Caribbean, and we go on dive trips with our friends or family to the Caribbean, so we weren't anxious to go back.
The biggest advantages for us for a domestic honeymoon were that we didn't have to worry about exchange rates or changing money, which I generally feel is a headache, and our cell phones worked. So Mark could run to the drugstore the morning on our honeymoon when I woke up with a sore throat and cough and call me to ask what kind of Tylenol to buy. On our first day, I had to call the attorney doing my character review to make sure my last reference for the Bar had been submitted. We didn't have to worry about not speaking the language or not drinking the water (which isn't that hard, but it isn't that easy).
We were able to do San Francisco and San Diego right because we didn't spend much on airfare, and we also got to go places we had never been and that excited us greatly, so we are very happy with our choice of honeymoon destination. If you are also considering a domestic honeymoon, definitely don't write it off just because it sounds boring or you feel silly or you feel like you have to do anything. Your honeymoon is the one thing about your wedding where you really shouldn't feel like you have to do something.