Try and go there sometime starting in late September when the high season ends and prices start bottoming out. You need a car to truly see iceland and unfortunately these can be quite expensive ($600 - 800 per week during summer season, for a small car with a manual transmission).

I'm going in October and just got a car for $290/week. Plus hotels will be cheaper, and I think even the Blue Lagoon changes their prices with the season.

Icelandair isn't a bad airline at all, plus the flight from Toronto isn't long. Just no miles earning potential, that's all.