Earlier quoted context omitted.
Most Icelanders do not want to join the EU. The two political parties with the current greatest following which will probably be elected for a new government next Saturday also oppose joining the EU.
And seeing as how well the EU has been to the PIIGS, i would say that most Icelanders are being rational.
They have unsustainable economies due to excessive public welfare programs and unfavorable demographics. Being outside the EU wouldn't magically solve those problems, though it would let them monetize some debt.