I'm trying to wrap up all my concerns about the reception into one post so you can get the full picture and I don't blow up the board

FI and are mostly hosting the wedding ourselves (some family has contributed but along the lines of "heres $xx.xx, use it however you see fit). We're having a about 40-50 people at our wedding. About half don't drink or are kids. Some that don't drink are VERY uppity about drinking in general (I know...its "OUR" wedding, do what we want...but not causing months of judginess is something we want. All of our friends (the other 20 or so) do drink and are pretty liberal.
At this point we're thinking that we'll have a dry reception (beginning at 4:45ish) with an afterparty at our house. Everyone will be invited to the afterparty, but we know that those who aren't interested in drinking/staying up past 9pm just won't come over, so I think that will work itself out.
So, the catch is...I really want a first dance AND I really want to dance with my dad. But I'm afraid that without alcohol, not many people at all will dance (and we already have a small crowd) and then things will get awkward.
Is this a valid fear? How do you all think I should deal with it?
(Keep in mind...we're from East Tennessee and we've got a fairly laid back crowd in terms of expectations but some very conservative people in terms of values/judgement...welcome to the Bible belt).