What you are missing is "Iceland during the Midnight Sun is in sort of a
permanent state of sunset. The sun never full sets and travels horizontally across the horizon throughout the night". I'm looking for that prolonged sunset light that stays for 6 hrs on a good weather. Photographers goes out at 9:30 PM and continue photographing until 3:30 AM in the morning.
"Due to atmospheric refraction and also because the sun is a disk rather than a point, the midnight sun may be experienced at latitudes slightly below the polar circle, though not exceeding one degree (depending on local conditions). For example, Iceland is known for its midnight sun, even though most of it (Grímsey being a notable exception) is slightly south of the Arctic Circle. The same mechanisms cause the period of sunlight at the poles to last slightly more than six months. Even the northern extremities of Scotland (and those places on similar latitudes such as St. Petersburg) experience a permanent twilight in the northern sky at these times." [
http://en.wikipedia.org/wiki/Midnight_sun]
Check this out as well:
Midnight Sun | Iceland on Vimeo
And this...
Midnight sun photography in Iceland - Iceland Photo Tours