The article says they are predicting a 10% unemployment rate next spring in Iceland. We will be slightly lower than that. The current situation we are in is correctable by the free market, whereas in Iceland, it is not correctable so quickly.
Our future economy at this point in time depends more on Obama's economic plans than the bursting of the credit bubble. More bail outs, tax hikes, payouts to individuals, energy policies (gas at $4 and cap & trade policies) and socialized medicine will hurt far more than any bursting of any bubble. This could drive us to a situation that is far worse than is in Iceland over the next 2 to 3 years.
I'd say you've called it about right. It's what I expect to happen.