My understanding is that the infrastructure has to be replaced so often that it is not a really cheap alternative. Maybe they're doing it right in Iceland, but maybe it's expensive but still less so than the alternatives.
“The water that comes up from these geothermal hot spots is full of minerals that clog up pipes and other factors that can eat through pipes.”
Not if you install it as a completely sealed system in your own yard. Why more folks do not do this I have no clue, it is almost free heating and cooling for your home.
The problem is that closed-loop systems are much more expensive than open-loop and cannot produce competitive electric power.
See NREL's report "Numerical Investigation of Closed-Loop Geothermal Systems in Deep Geothermal Reservoirs." The work was performed by Pacific Northwest National Laboratory, Sandia National Laboratories, Idaho National Laboratory, Stanford University and Pennsylvania State University.
For closed-loop systems, "Our results indicate competitive Levelized Cost of Heat (LCOH) can be achieved; however, competitive Levelized Cost of Electricity (LCOE) cannot be achieved without significant reductions in drilling costs...reservoir temperatures greater than 200 degrees C, achieved by going to greater depths (~3-4 km), may significantly enhance power production.That's 2 to 3 miles below the surface! Those aren't cheap holes to drill, especially in hot zones.