Who's in and who has a passport?

So there are a couple of questions we need to decide right away before we can even start thinking about destinations.

1. As Ben notes in his headline the cost is going to be somewhere between $700 and $1500 per person. Since Duck seemed to hover right around $200 we're talking about a cost that is 3-8 times more expensive than Duck. So this brings the first question of who is in for this trip and do we need to set a price of what everyone is willing to pay or are we all cool with the $700-$1500 range?

2. As of January first there is now a requirement that you have a passport when traveling anywhere outside of the US including Canada and Mexico. Does everyone have a passport or do we need to keep this trip to the 50 states? I hear the Beaches in FL and GA are lovely that time of year.