Iceland is already part of Schengen, EFTA, and NATO. They're in the best position there is, having negotiated the best the EU has to offer but not the bad parts

Iceland is already part of Schengen, EFTA, and NATO. They're in the best position there is, having negotiated the best the EU has to offer but not the bad parts, such as the Euro, Pfizer deals, the migration and asylum pact, or age verification. I can't imagine them joining the EU being anything but a massive downgrade for them.