I fail to see how Iceland still hasn't won ESC yet. Every year since 2009, Iceland has sent the most amazing songs. Yohanna (Is It True?) almost won, and if Norway hadn't sent Fairytale that year, Iceland definitely would've won.
2009 - Is It True? - Yohanna (very beautiful, great voice. Way better than Fairytale.)
2010 - Je Ne Sais Quoi - Hera Bjork (such a strong voice! Very passionate and the music video is absolutely adorable.)
2011 - Coming Home - Sjonni's Friends (I cried when I heard this first time. ;-; such an emotional backstory, yet Europe took no notice to this...)
2012 - Never Forget - Greta Salome & Jonsi (I absolutely adore this. Greta Salome is a genius for creating such a strong song. Very powerful and mysterious.)
2013 - Eg A Lif - Eythor Ingi (So sweet! Eythor has such a great voice, and the music video is so sweet
)
I think it's because of Europolitics and bloc voting. Iceland has no neighbours, so naturally it wouldn't be part of any 'friendships'.