I'm astounded by this small article about the beliefs of Icelanders;

Surveys show that despite their obsession with modern technology, as many as 80% of Icelanders believe in the existence of elves. Even today, roads have been rerouted and building plans redesigned or abandoned to avoid disturbing rocks where elves are said to live.

Longer article

“During the building of this network of high roads the roads administration called in a medium to negotiate with irate elves who had objected to the plans,” says our four wheel drive fountain-of-all-Icelandic-knowledge guide, who has lived in Iceland all his life largely thanks to his love of nature.

Apparently the perturbed pixies threatened to sabotage the project. The medium convened two séances, which led to a compromise: bureaucrats eschewed explosives and the elves withdrew their opposition.

And here people thought Fundamentalist Christians Faith prayer was wacky.

Update
Ok, this might help explain things

The nightlife doesn’t kick off till 11pm and nobody goes home before 5am. For an idyllic, historic fishing town Reykjavik rocks. We had frequented a clutch of mobbed bars and pubs, which pass for the pre-club scene warm up. Through one door we sampled the cockle-warming 40% proof Icelandic schnapps. But thankfully passed on the spicy vodka shots before heading off to Nelly’s Bar to see if Icelandic hospitality was as good as they say. We weren’t disappointed.