I'm not sure how recent you're talking about but I was there 2-3 years ago and had a fantastic time. I don't remember the exact times that I traveled but I'm pretty sure that it was winter. I went via military charter and stayed just for the weekend but it was still memorable both times. It was obviously cold and snowy and since a majority of the island is volcanic it seemed quite desolate but I honnestly preffered it to mid-western USA in the winter any day. Friends have been there in the May and June time frame and I hear that its very beautiful with lots of greenery albeit without trees. There is a huge range of activities ranging from shopping, to hiking, to biking, to fishing, skiing, swimming, etc. One of the best things that we did was go to a hot springs (The Blue Lagoon) which is a beautiful springs set outside of modern facilities including restaurant, showers, cafe, etc. They have a web site where you can check it all out.
Rejkyavek (sp?) is a wonderful modern city with old-world charm. Plenty of little streets with stone building and not a lot of high rises. It has a very European flavor to it with very nice stores and shops. We went for dinner and then stayed out literally all night. We were definitely not the exception and found that many natives were partying just as hard if not harder than us.
One other thing I should note is that the Icelandic people are some of the most beautiful I've seen...blond hair, blue eyes fantastic bodies. In fact, Icelandair has a promotion every year for the Miss Iceland pageant with airfare and admission to the contest/parties, etc. I understand that it sells out every year almost immediately.
Iceland is a place makes me cringe when I read about it or see adds on TV...only because it has been a relatively undiscovered gem for so long that I'm sure will soon be inundated with tourists from abroad.
One last thing, if I had to pick one thing that was lacking during my trip it was the restaurant service which seemed quite slow. This may have been because we had a large group (6-10), or maybe they just take longer for meals but it was one thing that we all noticed.
Have a great trip if you decide on Iceland!