Iceland is quite beautiful, I didn’t camp but I recall the park areas being quite fierce about not venturing off of walking paths to protect sensitive things like moss that take forever to grow. That may be a reason why they don’t allow dispersed camping. I’d say still go, it was beautiful in the winter and I didn’t find it too crowded or unbearably cold.
It’s pretty interesting to see how people give and interpret ratings in the US vs. Asia for example. In the US it seems like less than a mid-four is a gamble, in Japan you get some great restaurants hanging around at 3.0+. The reviews will say like “Everything was perfect great food, 3 stars”.