But due to various inquiries and requests for information of all sorts, I figured the easiest way would be to just write some blog posts and direct people here, rather than basically answer each email individually - I know I do have these moments of lucidity every once in awhile.
Check this out if you're on your way to Iceland: Camping Cars. What is a roof top tent I hear you ask, and what is a camping car? Well, its not really as complicated as it sounds but since an image is worth a thousand words, here's one:

So yeah, this is basically a relatively small and economical 4x4 jeep with a special attachment on the top which houses a tent. The reason I bring this up is because it actually addresses the 2 topics that crop up most frequently in relation to the subject of travel in Iceland: How to get around the place and what to do about accommodation...
So this setup that Camping Car rental offers is rather ingenious and furthermore, they can rent you a portable stove and other gear; pots and pans, cutlery etc. which in turn ticks another box - cause we all have to eat of course.
So yeah, a lot to be said for this one. There's plenty of vacant spots for parking and spending the night and this is how I would travel myself.