In my opinion EU is in the same point of time as Iceland was ,let´s say 2 years before banking collapse.
EU is heavily overdebted by its governments, rolling over the debts to the next generations.
Cheated bookkeeping that was discovered in Greece is probably the peak of an iceberg.
EU is starting to loose its momentum.
Euro as a currency also started to be a burden more, than an advantage.
Unlimited capital inflows cause bubbles like it was the cese with Iceland.
The clear example is Spain, where capital inflow from other EU countries caused a boom in construction industry and as a result, prices went up too high.
Spanish products lost their competitive advantage over other countries.
But now, Spain with the Euro cannot simply devalue its currency.
It started to be a big problem also for Slovakia.

Poland is also preparing for adopting Euro, but maybe this disaster never happen in Poland.

As it come to your list of advantages.

Well, let see that EU consists of countries closely bound together, and only the main ‘core’ ö Germany, France, Benelux, Austria is doing quite well. Everything outside that core is treated somehow like dependend territories or it would be in short future )look that for Greece problem the only solution so far is to steer the Greek economy from Berlin, by Deutsche Bundesbank. Maybe this is the only way to save Euro, but at the expense of loosing independence.

As for military protection – this is also just theatrical feature. Against what is Iceland to be protected ? Polar bears ?
If you need military protection, ask Poland, they are always willing to send troops anywhere to show off and be in front line, although it is not supported by the most of citizens.

In my opinion Iceland now is facing problems that EU will face in short term future and it will reveal total lack of support and lack of integrity in EU. So Iceland can face a replay of its current problems being in EU, when european funds and capital inflows create a new bubble.

As for Icelandic elitist.
I think inside or outside the EU the problem will stay the same, or maybe in EU it would even grow bigger. Who is going to represent Iceland in European Parliament ? The same members of these elites. Who is going to take the lion share of EU´s funds or at least would be in portioning this cake – the same people.
So joining the EU could even make them stronger.

And finally who are Iceland closest neighbours ?
Greenland (which want to be outside EU), Faroe Islands, Norway, UK – all countries somewhat not keen about EU.

The bitter truth is that Iceland has to develop new growth model and it should be sensible and based on available resources not phoney dreams.
So the fishing industry should be developed to offer more fully processed products , not raw, frozen or salted.
Tourism has also a great space for improvement offering wider choice of activities.

And let´s look at climate changes – Iceland could be a good place to buy a summer house or spen holidays as the weather is getting milder than in continental Europe.

Also the way of the future is modern greenhouse farming.

But at the and I must admitt that we have both sth in common – you and me are tired of our own countries and governments acting so we start to look fo a future elsewhere. I don´t have bad experience with Iceland so far but I have a lot of bad experience with living in my country.

You talk of a “fairytale”. That is a diversion. No one says everything is rosy in the EU. But it has a whole lot more to offer than the alternative.

The reason Iceland is not in the EU can be traced to nationalism and the control held by the fishing industry and agriculture industry within the Independence Party and Progressive Party…and to a lesser extent within the Social Dems.

Iceland is without a friend in the world. Our democracy has been raised on the foundations protected by the US, when the US considered Icelandic interests to go hand in hand with their own. In 2006 that was over. When the other Nordic countries were granted assistance from the US in 2008, Iceland was shut out.

We would gain for starters:
a) Military protection
b) A real currency
c) Getting rid of the price indexation
d) Diffusion of power from Icelandic elitist special interests

No small countries anywhere “go it alone” without protection or co-operation with its strong neighbours. Iceland might try but it will cost us dearly. And by us, I mean us who stand outside the fishing elite and political elite.

Tell me, what are the main advantages for Iceland not to join?

I would ask you – what are the main advantages for Iceland to join EU ?