Dude.. your engagement, your wife to be, your money so must be your choice too. I personally would never fall for that "will last for generations to come " bs if its not a smart choice thats not resulting in a financial loss. If you have lots of spare money (that you are otherwise not able to spend) and dont care, then go buy the largest, shiniest and the best diamond that the money can buy, otoh if you are like most of us then make a smart financial move.
A wife needs to be understanding and supportive of the decisions that you make and shouldnt be the one who whines about the size of the diamond that you bought for her and if she belongs to the later category, it wasnt probably the best idea to marry her IMO and sorry if that offends anybody here.
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