[QUOTE=trvlr70]Dude, you are picking a bad time of year to visit both, especially Iceland. The social season doesn't start until June. [QUOTE]
I think that's a pretty bizarre impression and I totally disagree that April is the "wrong" time to go to Iceland. From June to August the place is busy cos it's heaving with annoying tourists. I've been to Iceland 25 times, but rarely in summer. That "post apocalypic" feel is part of the unique weirdness that is Iceland - it goes with the alien landscape and eccentric people. I do recommend going to the Blue Lagoon / Bláa Loníð but it's much better outside of summer. It's so much nicer to be in a hot steaming pool when the air is cold and if you are really lucky you'll have the joy of snowflakes falling on your head and icicles forming on your wet hair as you sit in the water.
As for hotels, I really recommend
www.roomwithaview.is. They have nice apartments and a jacuzzi on the roof terrace that overlooks the main street, Laugavegur. If you can't get to the blue lagoon then you can sit up there with some drinks and watch the people go by on the street below.