It IS a hotspot. That is, Iceland exists because the tectonic fault currently is sitting atop an especially active point in the mantle, or something of that kind is going on. Thus the ridge pokes above the ocean. So everything is coming together to create this situation.
Evidence is that every once in a while Iceland releases plumes of toxic fluorine-containing gases that envelop the population. Last happened a few hundred years ago, if so. That should be fun.