I wouldn't say Iceland is completely unkown by any means. The twelve-year old on Xbox isn't a good representation of most Enlgish speakers by any means.
I have a lot of respect for your country, especially after learning that you guys elected an openly gay president. I doubt America would ever do such a thing.
But here in NYC, we tend to associate Iceland with Bjork. And your volcanoes. It seems like a beautiful country, though. I've got friends living in Northern Sweden and Helsinki, and it seems like Scandanavia owns some pretty cool vistas.