Iceland's population is 288,000 of which 180,000 live in greater Reykjavík. The centre of the old town is pleasant rather than spectacular. With the sun shinning the area around the north of Tjörnin ("city pond") is a fine place to while away a day in museums, shops and cafes (where beer is £4.30/$6.50USA per bottle, wine is at least £16.50/$24.00USA).
The Þjóðmenningarhúsið (Culture House) contains a fine collection of mediaeval manuscripts including Eddas and Sagas. These are exhibited in near darkness with the few lights being controlled by visitor movement, if you are alone and pause too long you are plunged into total darkness. The Asmundur Sveinsson Sculpture Gallery, near the fine (but expensive) Reykjavík camp site, is also recommended. Other cultural attractions include the small but perfectly formed Hið Íslenzka Reðasafn.
Perhaps the most impressive museum is the Árbæjarsafn Minjasafn Reykjavíkur, an open air folk museum containing thirty complete houses.
Most of the houses date from 1820 to 1920 and were originally situated in downtown Reykjavík.
N.B. Extensively and expensively advertised "The Blue Lagoon" coming soon to a web site near you.
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