1) Most sparsely populated country in Europe with comfy-looking homes in the countryside:
2) A large but pleasant metropolitan city/town with less traffic and noise which is a common annoyance in most capitals:
3) Cold weather enough to kill germs, but nevertheless pleasant and enjoyable compared to continental winters:
4) Open sea with hot summers:
5) Safety. Most of the crimes such as murder and theft are almost unheard of in Iceland with less than a thousand people working in law enforcement or so I read.
My only reason for not living there would be different language which an immigrant is most likely required to learn.
But regardless, the great conditions of Iceland are all made possible due to having a small and sustainable population, something the rest of the world can learn from.
