I do not know what we expected to see in Iceland in terms of architecture, but I think we expected something like Germany or Denmark. Although it is somewhat like Denmark, most of the architecture is not as beautiful . . . if that is the right word. We found Reykjavik to be a nice city but very grey. And many of the other towns are much the same. Then we realized why. They use a lot of concrete here. We suspect it is because it is fairly energy efficient, easy to build with, and sturdy for the weather and other things that happen here.
We also noticed that most of the homes are only one story - low to the ground - and again, not fancy. The insides look to be beautiful . . . it is just the outside.
Even with that, however, we have seen many beautiful countryside farms. They are quite spread out, but just as in Denmark, they are neat as a pin. Take a look: