Having been to 6 continents and 70 countries I can tell you the landscape in Iceland is truly unique and you will not find a similar environment around the world. From the milky blue hot spring waters to the barren moonscapes of sulfur, Iceland is sure to keep you paying attention for the entire drive around the "ring road." One word of warning for those looking to travel here is that it is not a cheap place! While wild camping is legal those on a budget should come with proper camping equipment (it gets cold of course) and BRING FOOD! Not only is food extremely expensive ($20-$50 easy for a decent meal), but availability of common items in the states such as beef jerky, dried fruits, etc. might not be the quality you like if they are even available.
Being on a tight budget myself I decided to hitch hike around the entire island and did so successfully in about a week (sticking mostly to the ring road). The Western fjords have some nice free hot springs and we were lucky enough to see the Northern lights at the end of August since it was a particularly frigid, clear evening. Flatey island, where the pictures of the grounded boat were taken, is an interesting settlement with a long history and only 8 year round residents! The moss of the island is great for the lack of trees and it makes sleeping on the ground surprisingly comfortable, even without a sleeping pad (but take care as some mosses take centuries to grow). Also, similar to Yellowstone in the United States you may find some vivid colors spouting out of the ground into pools around the island. Tourism is growing at a rapid rate in Iceland and hopefully larger numbers will drive competitive pricing for those hoping to snag a night or two indoors while traveling there. Be forwarned on the cost and excited about the nature!