I personally don't think that you should be offended. I don't think that it is in direct regard to the work that you've done. It is simply a matter of economics and so forth.
While renting a tux may not seem like a big deal...for some guys it is. I personally love dressing up that much (however a lot of guys don't), but the thought of having to rent one would right now would make me think twice about accepting an invitation to your formal. I'm not sure how many girls in your chapter have boyfriends - for them it's probably not as big of deal as they can, as you say save for a rental - but for the casual date with someone in your biology class it seems like a major roadblock. Also girls without boyfriends may not know who they are going to ask to your party, and so that narrows the timeframe to "save" for a rental. Further if I wasn't really into a girl, the idea of renting a tux would cause me to turn down the offer that I would have otherwise accepted if I could have worn a suit.
I guess in short, what I'm saying is that it is a lot to expect out of college guys in a variety of situations. Many guys are barely getting by with rent, beer, and food as their major expenses. Another $75 -125 is enough to be a major bummer, while every guy has a suit that wouldnt' be an added expense.
I think that you should allow suits, encourage tuxes, and forbid a simple sportcoat and khakis. Basically the pants had better be the same color as the jacket, and he better have a tie.
I also think you shouldn't take people disagreeing with you so personally. If you really want the most people to show to any event, you have to appeal to the widest portion of your constituency.
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