Volcanoes, Strange Patronyms, Small Horses, and Books

A nation of 300,000 highly educated people where everyone* reads books.  Bookstores run by experts.  No anti-intellectualism (political candidates pretend to be smart instead of confess to being dumb).  No competition with Amazon.  Three year-olds can pronounce Eyjafjallajökull.  Government funding for publishing.  What is this fantasy land? why Iceland of course.  I can't believe you didn't guess that.  Thanks for the heads up
The Itenerant Librarian
Source: the Bookseller.com

*I'm sure not everyone, someone would rather watch The Real Housewives of Reykjavik.