No, it's not Bjork, don't worry :)
First of all, I like the music of Jón Leifs, I find it interesting and engaging. I am talking mainly of his tone-poems about Iceland's landscape and natural forces (Hekla, Geysir, Dettifoss, Hafís) and his large-scale work Baldr inspired by Nordic mythology, but I also enjoyed his organ concerto a great deal, not to mention his Saga Symphony based on the"Sagas of Icelanders". They contain some of the noisiest and loudest music ever written!
Then I listened to some music by the contemporary composer Haukur Tómasson, performed by Icelandic musicians, and I liked it while at the same time appreciating the quality of the performance. This is the record, it even contains a brief historical recording of a folksong that sounds very peculiar! That speaks eloquently about the level of music education in Iceland, which I suspect is very high.
And finally, there's a little musical thing in Reykjavík which I really love...
Strange tastes, I know :)

EDIT: I still haven't listened to music by Hafliði Hallgrímsson, but I am going to do so at some point in the future.