It is an independent country.
I guess you're right sorta.
Iceland was granted independance from the Dutch in 1944.
http://www.cia.gov/cia/publications/factbook/geos/ic.html
I guess I was thinking about Greenland. They use mostly Dutch law and all that in Iceland. Still, it's not really a strategic place. That doesn't mean it's a bad place. In fact, it's probably a great place to live other than being cold.