Quote Originally Posted by Huginn ok Muninn View Post
Iceland could not defend itself from wholesale attack. Its population is just too small. It can deter such predation, though, if any attacker knows he would face "a rifle behind every blade of grass," as Yamamoto famously said about the prospects of attacking America. This is the deterrent for attacking Switzerland as well. It's just not worth it.
Switzerland has several major advantages in this regard that Iceland hasn't.
First of all, its geographical location has become much less important. Not being worth it, is also based on the fact that one can wage war while completely ignoring Switzerland. Iceland on the other hand, still has a strategically important position, which was also the reason the U.K. took control of it before Germany could, during the second World War. For a hypothetical conflict between Europe and the US, an undefended Iceland could pose the same kind of threat and become the European Cuba.
Secondly, Iceland's population is 24 times as small as that of Switzerland. That means a lot less people able to resist.
Thirdly, Iceland's interior is too harsh for the guerilla type of warfare you describe, even for Icelanders. Control of the coastline would be enough. It's not without reason that Iceland used to send their outlaws to the interior of the island. Switzerland on the other hand, although a mountainous region, is characterized by a very cultivated landscape, even in the high alps. In Switzerland there are many possibilities to retreat into almost inaccessible valleys, which still offer plenty of resources to stay alive.

For Iceland to rely on this type of defence of the country is a much greater risk than for Switzerland. Also because for Switzerland their financial power provides an additional (and far greater) type of security.

Quote Originally Posted by Chlodovech
Not every branch of Iceland's military has to be professional. A professional navy and mobile coastal defence should suffice + a small but capable cadre of officers who would lead a volunteer militia in times of crisis. And rapid deployment should be high on the agenda of Iceland's warrior class.
I agree. Of course their activities should adjust to the specific characteristics of their country. Coastal defence should be top priority.

If I'm allowed to dream a bit, I'd rather see Iceland (in addition to its own military) protected by a Germanic military union which, based on its common heritage, considers it an ethical duty to protect this historical, mythical and spiritual gem of the Germanic world, Ultima Thule.